Title: Internal Revenue Bulletin: 2012-14 | Internal Revenue Service
Headings: Internal Revenue Bulletin: 2012-14
Internal Revenue Bulletin: 2012-14
Highlights of This Issue
INCOME TAX
Rev. Rul. 2012-10 Rev. Rul. 2012-10
Rev. Rul. 2012-11 Rev. Rul. 2012-11
T.D. 9564 T.D. 9564
REG-168745-03 REG-168745-03
Rev. Proc. 2012-19 Rev. Proc. 2012-19
Rev. Proc. 2012-20 Rev. Proc. 2012-20
Rev. Proc. 2012-23 Rev. Proc. 2012-23
Announcement 2012-14 Announcement 2012-14
Preface
The IRS Mission
Introduction
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Rev. Rul. 2012-10
DRAFTING INFORMATION
T.D. 9564
Guidance Regarding Deduction and Capitalization of Expenditures Related to Tangible Property
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
AGENCY:
ACTION:
SUMMARY:
DATES:
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Background
Explanation of Provisions
I. Overview
II. Materials and Supplies Under §1.162-3
A. Definition of materials and supplies
B. Optional method for rotable or temporary spare parts
C. Election to deduct materials and supplies under the de minimis rule
D. Election to capitalize materials and supplies
III. Repairs Under §1.162-4
IV. Rentals Under §1.162-11 and Leased Property Under §1.167 (a)-4
V. Amounts Paid to Acquire or Produce Tangible Property Under §1.263 (a)-2T
A. Moving and reinstallation costs
B. Work performed prior to placing property into service
C. Transaction costs
D. De minimis rule
VI. Amounts to Improve Property Under §1.263 (a)-3T
A. Overview
B. Determining the unit of property
1. Overview
2. Buildings and Structural Components
a. Condominiums and cooperatives
b. Leased buildings (taxpayer as lessee)
3. Property Other Than Buildings
a. Plant property
b. Network assets
c. Leased property other than leased buildings
4. Unit of Property for Improvements
5. Unit of Property for Leasehold Improvements
6. Additional Rules for Determining Units of Property
C. Special Rules for Improvements
1. Improvements to Leased Property
a. Application of intangible regulation under §1.263 (a)-4 to leasehold improvements
b. Operative rules for leasehold improvements
i. Lessee improvements
ii. Lessor improvements
2. Certain Costs Incurred During an Improvement
3. Removal Costs
D. Safe harbor for routine maintenance
E. Betterments
1. Amounts Paid to Ameliorate Material Conditions and Defects
a. Knowledge of defect
b. Environmental cleanup of reacquired property
2. Material Increase in Capacity, Productivity, Efficiency, Strength, or Quality
3. Refreshing and Remodeling Buildings
F. Restorations
1. Casualty Loss
2. Rebuilding to Like-New Condition
3. Replacement of Major Component or Substantial Structural Part
VII. Accounting and Disposition Rules for MACRS Property
A. Accounting for MACRS property
B. Dispositions of MACRS property
1. Definition of Disposition
2. Gain or Loss
3. Determining the Appropriate Asset Disposed of
4. Accounting for Assets Disposed Of
C. General asset accounts
1. Establishing General Asset Accounts
2. Depreciation of General Asset Account
3. Disposition of an Asset from a General Asset Account
4. Other Transactions
5. Identification of Disposed Of or Converted Asset
VIII. Effective Dates and Changes in Methods of Accounting
Special Analyses
Amendments to the Regulations
PART 1—INCOME TAXES
§1.162-3 Materials and Supplies.
§1.162-3T Materials and supplies (temporary).
§1.162-4 Repairs.
§1.162-4T Repairs (temporary).
§1.162-6 [Removed]
§1.162-11 Rentals
§1.162-11T Rentals (temporary)
§1.165-2 Obsolescence of nondepreciable property.
§1.165-2T Obsolescence of nondepreciable property (temporary).
§1.167 (a)-4 Leased property.
§1.167 (a)-4T Leased property (temporary).
§1.167 (a)-7 Accounting for depreciable property.
§1.167 (a)-7T Accounting for depreciable property (temporary).
§1.167 (a)-8 Retirements.
§1.167 (a)-8T Retirements (temporary).
§1.168 (i)-0 Table of contents for the general asset account rules.
§1.168 (i)-1 General asset accounts.
§1.168 (i)-0T Table of contents for the general asset account rules (temporary).
§1.168 (i)-1T General asset accounts (temporary).
§1.168 (i)-1 General asset accounts.
§1.168 (i)-1T General asset accounts (temporary).
§1.168 (i)-7T Accounting for MACRS property (temporary).
§1.168 (i)-8T Dispositions of MACRS property (temporary).
§1.263 (a)-0 Table of contents.
§1.263 (a)-1 Capital expenditures; in general.
§1.263 (a)-2 Amounts paid to acquire or produce tangible property.
§1.263 (a)-3 Amounts paid to improve tangible property.
§1.263 (a)-0T Table of contents (temporary).
§1.263 (a)-1T Capital expenditures; in general (temporary).
§1.263 (a)-2T Amounts paid to acquire or produce tangible property (temporary).
§1.263 (a)-3T Amounts paid to improve tangible property (temporary).
§1.263 (a)-1 Capital expenditures; in general.
§1.263 (a)-1T Capital expenditures; in general (temporary).
§1.263 (a)-2 Amounts paid to acquire or produce tangible property.
§1.263 (a)-2T Amounts paid to acquire or produce tangible property (temporary).
§1.263 (a)-3 Amounts paid to improve tangible property.
§1.263 (a)-3T Amounts paid to improve tangible property (temporary).
§1.263 (a)-6T Election to deduct or capitalize certain expenditures (temporary).
§1.263A-1 Uniform capitalization of costs.
§1.263A-1T Uniform capitalization of costs (temporary).
§1.1016-3 Exhaustion, wear and tear, obsolescence, amortization, and depletion for periods since February 13, 1913.
§1.1016-3T Exhaustion, wear and tear, obsolescence, amortization, and depletion for periods since February 13, 1913 (temporary).
Note
Drafting Information
Rev. Rul. 2012-11
Part III. Administrative, Procedural, and Miscellaneous
Rev. Proc. 2012-19
SECTION 1. PURPOSE
SECTION 2. BACKGROUND
SECTION 3. SCOPE
SECTION 4. CHANGES IN METHODS OF ACCOUNTING
SECTION 5. EFFECT ON OTHER DOCUMENTS
SECTION 6. EFFECTIVE DATE
SECTION 7. PAPERWORK REDUCTION ACT
SECTION 8. DRAFTING INFORMATION
Rev. Proc. 2012-20
SECTION 1. PURPOSE
SECTION 2. BACKGROUND
SECTION 3. SCOPE
SECTION 4. APPLICATION
SECTION 5. CHANGES IN METHODS OF ACCOUNTING
SECTION 6. EFFECT ON OTHER DOCUMENTS
SECTION 7. EFFECTIVE DATE
SECTION 8. PAPERWORK REDUCTION ACT
SECTION 9. DRAFTING INFORMATION
Rev. Proc. 2012-23
SECTION 1. PURPOSE
SECTION 2. BACKGROUND
SECTION 3. SCOPE
SECTION 4. APPLICATION
.01 Limitations on Depreciation Deductions for Certain Automobiles.
.02 Inclusions in Income of Lessees of Passenger Automobiles.
SECTION 5. EFFECTIVE DATE
SECTION 6. DRAFTING INFORMATION
Part IV. Items of General Interest
REG-168745-03
Notice of Proposed Rulemaking by Cross-Reference to Temporary Regulations, Notice of Public Hearing, and Withdrawal of Previously Proposed Regulations Guidance Regarding Deduction and Capitalization of Expenditures Related to Tangible Property
AGENCY:
ACTION:
SUMMARY:
DATES:
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Special Analyses
Drafting Information
Withdrawal of Proposed Amendments to the Regulations
Proposed Amendment to the Regulations
PART 1—INCOME TAXES
§1.162-3 Materials and Supplies.
§1.162-4 Repairs.
§1.162-6 [Removed]
§1.162-11 Rentals.
§1.165-2 Obsolescence of nondepreciable property.
§1.167 (a)-4 Leased property.
§1.167 (a)-7 Accounting for depreciable property.
§1.167 (a)-8 Retirements.
§1.168 (i)-0 Table of contents for the general asset account rules.
§1.168 (i)-1 General asset accounts.
§1.168 (i)-1 General asset accounts.
§1.168 (i)-7 Accounting for MACRS property.
§1.168 (i)-8 Dispositions of MACRS property.
§1.263 (a)-0 Table of contents.
§1.263 (a)-1 Capital expenditures; in general.
§1.263 (a)-2 Amounts paid to acquire or produce tangible property.
§1.263 (a)-3 Amounts paid to improve tangible property.
§1.263 (a)-1 Capital expenditures; in general.
§1.263 (a)-2 Amounts paid to acquire or produce tangible property.
§1.263 (a)-3 Amounts paid to improve tangible property.
§1.263 (a)-6 Election to deduct or capitalize certain expenditures.
§1.263A-1 Uniform capitalization of costs.
§1.1016-3 Exhaustion, wear and tear, obsolescence, amortization, and depletion for periods since February 13, 1913.
Note
Announcement 2012-14
TEB Voluntary Closing Agreement Program: Relief From Allocation and Accounting Errors for Certain Issuers of Tax-Exempt Student Loan Bonds
SECTION 1. BACKGROUND
SECTION 2. TAX EXEMPT BONDS VOLUNTARY CLOSING AGREEMENT PROGRAM (TEB VCAP)
Abbreviations

Content: For purposes of regulations section 1.61-21 (g), relating to the rule for valuing non-commercial flights on employer-provided aircraft under section 61 of the Code, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the first half of 2012 are set forth. Rev. Rul. 2012-11 Rev. Rul. 2012-11
Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for April 2012. T.D. 9564 T.D. 9564
Temporary and proposed regulations under sections 162 (a) and 263 (a) of the Code provide guidance on the application to amounts paid to acquire, produce, or improve tangible property. The temporary regulations also provide guidance under section 168 regarding the accounting for, and dispositions of, property subject to section 168 and amend the general asset account regulations. REG-168745-03 REG-168745-03
Temporary and proposed regulations under sections 162 (a) and 263 (a) of the Code provide guidance on the application to amounts paid to acquire, produce, or improve tangible property.