Sherry Miller, ARNP is a medicare enrolled Nurse Practitioner - Family in Mason City, Iowa. She graduated from nursing school in 2015 and has 3 years of diverse experience with area of expertise as Nurse Practitioner.
Major repairs to production equipment should be capitalized. The repair to the asset will extend the useful life of the piece of equipment, which is an allowable reason to capitalize an expense. Companies should be careful, however, to not capitalize the maintenance cost of a piece of equipment.
For example, if a taxpayer's principal business activity is the retail sale of bathroom fixtures--which falls under one of the ineligible NAICS codes listed above--and a smaller segment is plumbing repairs, he or she cannot use notice 2001-76 to convert the business's overall method of accounting to cash.