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Sec. 1.162-4 Repairs.

(a) In general.

A taxpayer may deduct amounts paid for repairs and maintenance to tangible property if the amounts paid are not otherwise required to be capitalized. Optionally, § 1.263(a)-3(n) provides an election to capitalize amounts paid for repair and maintenance consistent with the taxpayer's books and records.

(b) Accounting method changes.

A change to comply with this section is a change in method of accounting to which the provisions of sections 446 and 481 and the accompanying regulations apply. A taxpayer seeking to change to a method of accounting permitted in this section must secure the consent of the Commissioner in accordance with § 1.446-1(e) and follow the administrative procedures issued under § 1.446-1(e)(3)(ii) for obtaining the Commissioner's consent to change its accounting method.

(c) Effective/applicability date

(1) In general.

This section applies to taxable years beginning on or after January 1, 2014. Except as provided in paragraphs (c)(2) and (c)(3) of this section, § 1.162-4 as contained in 26 CFR part 1 edition revised as of April 1, 2011, applies to taxable years beginning before January 1, 2014.

(2) Early application of this section.

A taxpayer may choose to apply this section to taxable years beginning on or after January 1, 2012.

(3) Optional application of TD 9564.

A taxpayer may choose to apply § 1.162-4T as contained in TD 9564 (76 FR 81060), December 27, 2011, to taxable years beginning on or after January 1, 2012, and before January 1, 2014.

[Adopted by T.D. 6291, 23 FR 2244, Apr. 5, 1958; republished by T.D. 6500, 25 FR 11402, Nov. 26, 1960. Revised by T.D. 9564 , 76 FR 81060-81127, Dec. 27, 2011. Revised by T.D. 9636 , 78 FR 57685-57747, Sept. 19, 2013, corrected at 79 FR 42189-42193, July 21, 2014.]

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