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Tangible Property Regulations: Using The De Minimis Safe Harbor, Guido Van Der Hoeven

Rural Tax Education

In late 2013, the IRS issued new repair regulations that became effective as of January 1, 2014. Since the new repair regulations were issued, clarifying guidance has been and continues to be issued. The IRS issued Notice 2015–82 in late November 2015, which increased the de minimis amount from $500 to $2,500 beginning January 1, 2016. This increased amount is part of the repair regulations that were issued and found in Treas. Reg. § 1.263(a)–1(f)(1), which applies to taxpayers who do not have an applicable financial statement (AFS). Most farmers and ranchers will not have an AFS. The immediate tax …