Tangible Repair Regulations: Safe Harbors, Bonus Depreciation vs. Section 179, Expense Policies & Guidelines

TPRs affect every business type and rental property. Businesses and their tax advisers have always contemplated whether asset related purchases could be expensed or whether they should be capitalized and whether maintenance and renovation costs could be expensed or must be capitalized.

Making these determinations is complex. Taxpayers must capitalize purchases that meet the definition of a betterment, restoration, or adaptation. At the same time, the de minimis, routine maintenance, and small business safe harbors can provide valuable tax savings for eligible businesses.

TPRs bring considerations and opportunities for businesses. 60 percent bonus depreciation is available for 2024, decreasing to 40 percent for 2025, and the Section 179 expensing limit has increased to $1.25 million in 2025. Tax practitioners and companies must understand how to maximize depreciation and expense deductions for fixed asset purchases.

Listen as our panel of cost recovery experts explains the TPR, including reviewing depreciation deductions and property dispositions to maximize deductions for businesses.

1. Tangible property regulations
2. Subsequent legislation affecting TPRs
3. Safe harbors
4. Expense policy options
5. Expense vs. capitalization determinations
6. Bonus depreciation
7. Section 179
8. Dispositions
9. Case studies

This webinar will cover these and other critical issues:

• Determining whether bonus or Section 179 expensing is the better option
• When to expense routine maintenance
• Eligibility for the small business safe harbor
• Expensing policies businesses should have in place
• IRS-issued clarifications impacting depreciation

Learning Objectives

After completing this course, you will be able to:

• Determine whether bonus depreciation or bonus expensing is the better option
• Understand how rules and regulations related to tangible repair regulations have evolved
• Identify safe harbors for small businesses
• Recognize expensing policies that businesses should consider having in place
• Ascertain the advantages of cost segregation
• Develop a tax strategy throughout the real estate life cycle

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).