Many people have questions about grouping together improvements and repairs when deducting business expenses. The answer is to keep repairs separate from major improvements. Ordinary repairs and maintenance on business equipment and buildings are deductible business expenses. Improvements which materially add to the value of the property or significantly prolong its useful life must be depreciated over a period of years. To avoid losing tax deductions for repairs and maintenance, make major improvements completely apart from repairs and maintenance. If you have any questions about deductible business expenses feel free to contact our office.
Business Expense Deduction: Repair vs Improvement
