Tangible Property Regulation for
Office Buildings

Source identified expenditures that met the requirements under the Tangible Property Regulations (TPR) to be treated as deductible expenses. Expenditures deemed an improvement per the final regulations were assigned to the proper MACRS (Modified Accelerated Cost Recovery) recovery periods, with several assets eligible for bonus depreciation. These determinations were made by reviewing cost details, construction drawings, and from interviews with the property owner, and their knowledgeable representative. Additionally, assets originally placed in service that were partially or completely removed during the renovation were identified as dispositions. A detailed deliverable documenting all findings, was provided to the client and their tax advisor for proper implementation during the preparation of the tax returns.