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May 14, 2024

IRS proposes changes to interest capitalization regulations for improvements to designated property

The IRS and Treasury today issued proposed regulations (REG-133850-1) that would remove the associated property rule and other similar rules from regulations concerning interest capitalization requirements for improvements to designated property under IRC Section 263A(f). The proposed regulations would also modify the definition of "improvement" and make additional changes consistent with removing the associated property rule. A Tax Alert is forthcoming.

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Published by NTD’s Tax Technical Knowledge Services group; Chris DeZinno, legal editor