Part III. Administrative, Procedural, and Miscellaneous

(1) Description of change . (a) Applicability . This change applies to a taxpayer that wants to change from capitalizing under § 263(a) amounts paid or incurred for tangible property to deducting these amounts as repair and maintenance costs under § 162 and § 1.162–4T. This change also applies to a taxpayer that wants to change its units of property under § 1.263(a)–3T(e) solely for purposes of determining whether amounts paid or incurred improve a unit of property under § 1.263(a)–3T.

(b) Inapplicability . This change does not apply to the following:

(i) A taxpayer that is required under § 263A and the regulations thereunder to capitalize the costs for which the taxpayer wants to change its method of accounting under section 3.10 of this APPENDIX if the taxpayer is not capitalizing these costs, unless the taxpayer concurrently changes its method to capitalize these costs in conjunction with a change to a UNICAP method under section 11.01 or 11.02 of this APPENDIX (as applicable);

(ii) A taxpayer that wants to change its method of accounting for dispositions of depreciable property, including a change in the asset disposed of (but see sections 6.29, 6.30, and 6.31 of this APPENDIX); or (iii) For any taxable year in which the § 1.167(a)–11(d)(2) repair allowance election was made, any property subject to the repair allowance under § 1.167(a)–11(d)(2) (including expenditures incurred after December 31, 1980, for the repair, maintenance, rehabilitation, or improvement of property placed in service before January 1, 1981).

(2) Certain scope limitations inappli- cable . The scope limitations in section 4.02 of this revenue procedure do not apply to a taxpayer that makes this change for its first or second taxable year beginning after December 31, 2011. If the taxpayer makes both this change and a change to a UNICAP method under section 11.01 or 11.02 of the APPENDIX (as applicable) for its first or second taxable year beginning after December 31, 2011, on a single Form 3115 for the same year of change in accordance with section 3.10(5)(a) of this APPENDIX, the scope limitations in section 4.02 of this revenue

26 CFR 601.204: Changes in accounting periods and methods of accounting. (Also Part I, §§ 162, 263(a), 263A, 446, 481; 1.446–1.)

Rev. Proc. 2012–19