Outside Publication

IRS Issues Favorable Rules For Retail Remodeling Costs, Law360

December 21, 2015

On Nov. 19, the IRS released Revenue Procedure 2015-56, which provides a safe harbor method of accounting for costs incurred by retailers and restaurants in remodel and refresh projects. In general, the safe harbor allows taxpayers to deduct 75 percent of such costs under section 162 and capitalize the remaining 25 percent under section 263(a).

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