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PowerPlan Announces White Paper on Long-Term Service Agreements: Suggests Taking Advantage of Tangible Property Regulations

Atlanta (August 4, 2015) PowerPlan, the leading accounting, tax and capital budgeting optimization platform for capital asset-intensive businesses, announces today the release of a new white paper, which highlights how the IRS’s final regulations governing repairs and capitalization on Long Term Service Agreements (LTSAs) can be leveraged to improve your tax strategy. The new whitepaper “Do You Know What’s in Your Long Term Service Agreement? (LTSA)” is available at no cost to download.

LTSA’s offer companies relatively fixed long-term maintenance costs and contractually-incentivized support. However, the contracts for these agreements can be complex and vague. It is not uncommon for tax departments to oversimplify an LTSA’s costs by making broad assumptions regarding what constitutes a current deductible repair versus what is a capitalized expense. This new whitepaper discusses the importance of understanding the components of LTSA agreements to determine the appropriate tax treatment.

To read the complete white paper click here.