There are significant changes in federal tax law that will likely affect business owners significantly. 

These changes will affect the way you are required to deduct expenses related to the ownership of tangible property (for example: buildings, land, furniture, equipment, materials & supplies, etc.).

These changes are a direct result of recently issued regulations (“regs”) from the IRS, addressing the tax treatment of amounts paid to acquire, produce, or improve tangible property. The regs impose complex rules governing when such payments can be deducted and when they must be capitalized and depreciated over time.

The new rules must be adhered to for tax years beginning on or after January 1, 2014 and may entail significant time and effort to adopt and comply with. 

Read more about deducting and capitalizing business expenses here.