Denver, CO, United States – March 5, 2015
Tangible Property Regulations
Titan Echo announced the launch of their new Tangible Property Regulations (TPR) tool, Titan Echo TPR Solution (for UoP and Partial Disposition).
Titan Echo has released its new software solution to help CPAs and their clients benefit from the IRS Final Tangible Property Regulations.
The IRS has issued new Tangible Property Regulations (TPRs) that require taxpayers use the Unit of Property (UoP) concept when applying the new regulations going forward. Applying the Unit of Property concept with the new TPRs enables potential tax benefits for taxpayers.
Basically, now taxpayers with tangible property must delineate a building’s basis into its various subsystems (i.e. electrical systems, plumbing, etc.) by applying the Unit of Property concept. Because of this, there are now several potential benefits available for taxpayers including Partial Dispositions and Late Partial Dispositions.
With the new Partial Asset Disposition rules (a part of the TPRs), the taxpayer can elect to:
- Quantify the value of the disposed component
- Remove the disposed asset from the Fixed Asset Schedule
- Realize the quantified value as a tax benefit
The TPRs state that Partial Asset Dispositions need to be captured “in the year the component asset was disposed”. This means that if a new roof was put on a building in 2014, in order to get the tax benefit of depleting the old roof, this can only be done prior to filing the 2014 tax return.
However, because the TPRs were only finalized in 2014, the regulations allow taxpayers to leverage a Partial Asset Disposition against any asset (i.e. “improvement”) that remains on the books, regardless of what year the disposed component was removed. This essentially allows taxpayers to look back to prior tax years and apply the new TPRs.
(This is what’s called LATE partial asset disposition, and these opportunities are only available if captured BEFORE filing 2014 tax returns.)
The Unit of Property concept is key in effectively utilizing Partial and Late Partial Disposition opportunities.
Titan Echo’s new software solution tool empowers CPAs to easily apply Unit of Property quickly and cost effectively. For just $295, CPAs can get one Unit of Property calculation to help benefit their clients. This UoP calculation is for all the real property UoPs on a client’s fixed asset schedule.
*Additional UoP instances can be purchased for $295 each. For CPAs with many clients that can benefit from Unit of Property, Titan Echo has options allowing them to bring those benefits economically.
CPAs looking to take full advantage of the new TPR benefits can purchase Titan Echo’s TPR Solution by Titan Engineering. The sign up page detailing full service availability and features can be found here: http://titanecho.com/tangible-property-regulation