Can you expense your repairs? Your answer might be at odds with the IRS

Description

Abstract: When fixed assets are repaired, how should this be accounted for? Most business owners prefer to expense repairs and maintenance in the current period, because it saves taxes and simplifies the accounting. But the IRS has another, more complicated plan for these costs: capitalizing them. This article explores the tax implications of this approach, and shows what kinds of repairs can still be expensed. A sidebar lists the factors that the Tax Court considers in determining whether a repair should be classified as a capital improvement or an expense.