Tangible Property Regulations Edits Could Hurt Businesses

IRS Changes to Tangible Property Regulations Could Hurt Small Businesses, say Experts


The new Internal Revenue Service (IRS) regulations on the deduction and capitalization of expenses related to tangible property regulations could hurt small businesses, say tax experts. Still, there is improvement that could also benefit small business owners when it comes to amounts paid to improve a unit of property.

Tangible Property Regulations
Tangible Property Regulations


As a consequence, the wise business owner is encouraged to contact a local real estate broker or IRS expert to inquire ask whether new “tangible property regulations” will hurt or event help when it comes to paying the IRS.

Another aspect of the changes to IRS tangible property regulations is linked to how the IRS is actually stating that new regulations will help rather than hurt small business owners. At the same time, tax experts are wary of the IRS when it comes to the impact of any new taxes or guidance for small business owners. For instance, concerned citizens have written to the IRS asking about the many challenges and obligations that small business already faces in this uncertain economy.

IRS regulations
IRS regulations


New IRS regulations may burden business owners

The concern about new IRS regulations that are linked to change to tangible property regulations are still somewhat confusing, state officials with the American Institute of CPAs (AICPA).

For example, the long list of AICPA concerns for small business owners include:

– How will these new IRS regulations provide guidance for such things as capital expenditures such as repairs, business supplies and even maintenance for business properties?

– Will the IRS change current guidance and rules for deductible business expenses?

– Does the IRS have a plan to help business owners make adjustment for such things as inflation?

– How will the IRS calculate adjustments when it comes to prior-year tangible property costs?

In general, today’s already busy and often stressed out small business owner has a real need-to-know when it comes to new IRS tax increases. The best advice, say tax experts, is to consult with a local real estate agent or tax attorney.

Internet Tax Freedom Act
Internet Tax Freedom Act


Internet Tax Freedom Act impacts small business owners

While there has been a lot written and reported in the media and online about the Internet Tax Freedom Act, there is little written today about how this act prevents state and local governments from simply taxing users for Net access. In turn, there is concern from small business owners who feel they are already “taxed to death.”

While there is hope that the new Republican-controlled Congress will find some way and means to give small business owners a new permanent Internet Tax Freedom Act in 2015 that will save them money, there are still real fears that more IRS tax is on the way for small businesses.

Moreover, there is more good news on the horizon for investors and small business owners, states the Center for Audit Quality (CAQ). According to a CAQ survey, “investor confidence” in such things as US capital markets has claimed steadily. However, the country is still facing a post-Recession period when there are clear and present dangers for those betting on Internet business growth with their investment portfolios.


Burdening small businesses
Burdening small businesses

Tangible Property Regulations hurt small businesses?

The new IRS regulations for tangible property state that a “unit of property” is still defined as a building and its various components. However, there are many longtime business owners commenting online about not being able to decode “just what the IRS wants or requires?”

Overall, there are many knowledgeable real estate brokers who specialize in commercial property rentals for small business who can help with a “reality check” on if tangible property regulations will either help or harm your small business.

On top of all this, when it comes to your tax filings for yourself or clients, consider e-filing this year.  When considering solutions to efile 1099 forms online, I recommend using services like eFile4Biz.com.  They’re an industry leader, and whether you use them or not, their service can be an excellent benchmark to measure other providers quality.

They handle everything – the e-filing, printing and delivery of your forms to recipients as well.  Choosing to file 1099 online and w-2 tax forms will save you tons of running around and stress involved with organizing forms and postage, including running around to drop off the mail.  Their video is shown above, if you want to learn more. Stop by our WordPress page, and post your comments or resource links to debate this matter further.

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