Yes, there is a new automatic consent provision in connection to changes relating to costs associated with foreclosures or similar transactions.

Pursuant to I.R.C. § 263A(b)(2)(A), the uniform capitalization rules apply to real or tangible property acquired by the taxpayer for resale. According to the Service, taxpayers have asked whether these rules apply to real property acquired by certain taxpayers through a foreclosure proceeding or a deed-in-lieu of foreclosure transaction. Prior to Rev. Proc. 2014-16, there was no automatic consent procedure for a change in method of accounting to stop capitalizing costs of acquiring and holding property obtained through foreclosure (i.e., or similar transaction).

As a result, Rev. Proc. 2014-16 has added a section to provide automatic consent for a change in method of accounting to an otherwise permissible method of accounting that does not capitalize amounts for acquiring or holding real property obtained through a foreclosure proceeding, a deed-in-lieu of foreclosure transaction, or another similar transaction.