1545-BJ93 201104 Unified Agenda of Federal Regulatory and Deregulatory Actions 1545 Internal Revenue Service IRS 1500 Department of the Treasury TREAS Capitalization of Amounts Paid To Repair, Improve, or Rehabilitate Tangible Property This document contains temporary regulations that explain how section 263(a) of the Internal Revenue Code (Code) applies to amounts paid to acquire, produce, or improve tangible property. The proposed regulations clarify and expand the standards in the current regulations under section 263(a), as well as provide some bright-line tests (for example, a de minimis rule for acquisitions). The temporary regulations will affect all taxpayers that acquire, produce, or improve tangible property. On August 21, 2006, the IRS and Treasury Department published in the Federal Register (71 FR 161) proposed amendments to the regulations under section 263(a) (2006 proposed regulations) relating to amounts paid to acquire, produce, or improve tangible property. The IRS and Treasury Department received numerous written comments. A public hearing was held on December 19, 2006. After considering the comment letters and the statements at the public hearing, the IRS and Treasury Department withdrew the 2006 proposed regulations and proposed new regulations (2008 proposed regulations) (73 FR 12838). After considering the comment letters and input from the Service, the IRS and Treasury Department are planning to withdraw the 2008 proposed regulations and propose new regulations, which will also be issued in temporary form. Included as part of the new project will be temporary and proposed regulations under section 1.168 revising certain property disposition rules. This Regulatory Information Data Form is being submitted to request a RIN for the temporary regulations to accompany the re-proposed regulations (RIN 1545-BE18). Other Significant First Time Published in The Unified Agenda Final Rule Stage No No 26 CFR 1.162-3 1.162-4 1.162-6 1.162-11 26 CFR 1.165-2 1.165-2T 26 CFR 1.167(a)-4 1.167(a)-7 1.167(a)-7T 1 26 CFR 1.168(i)-0 1.168(i)-0T 1.168(i)-1 1. 26 CFR 1.263(a)-0 1.263(a)-1 1.263(a)-2 1. 26 CFR 1.263A-1 26 CFR 1.1016-3 1.1016-3T 26 USC 162 26 USC 165 26 USC 167 26 USC 168 26 USC 263(a) 26 USC 263A 26 USC 1016 26 USC 7805 No Temporary Regulations 06/00/2011 REG-168745-03 Drafting attorney: Merrill D. Feldstein (202) 622-4950 Reviewing attorney: Scott K. Dinwiddie (202) 622-4800 Treasury attorneys: Brandon Carlton (202) 622-6865 and Eric Lucas (202) 622-0869 CC: ITA No No None No No No 1545-BE18 Related to Merrill Feldstein D. 1545 Internal Revenue Service IRS 202 622-4950 202 622-6316 merrill.d.feldstein@irscounsel.treas.gov 1111 Constitution Avenue NW., Washington DC 20224