Companies can now deduct interest on property improvements without tracking 'associated' assets

The US Treasury Department has removed a rule that required companies to capitalize interest costs on property improvements based on other "associated" assets. This means companies no longer have to track interest expenses across a wider range of related properties when making improvements, simplifying their accounting.

Companies that build or improve real estate and other tangible assets will find it easier to manage their tax accounting. The old rule forced them to connect interest costs on one improvement to other, sometimes unrelated, assets. This change cuts down on complex calculations and potential disputes with tax authorities, making it cheaper and faster to account for new construction or upgrades.