Since the inception of the Internal Rev-enue Code, the Internal Revenue Ser-vice (IRS) and drycleaning businesses have been at odds over whether expenditures made are currently deductible or whether they must be capitalized and recovered through depreciation over time. Now, after seven years of drafts and proposed rules, the IRS has issued final regulations addressing whether a cost is a deductible repair or a capital expenditure. The IRS has also released a long-awaited Revenue Procedure that details the procedures for obtaining the "automatic" consent of the IRS to change accounting methods as required by the new repair regulations.
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