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.
He goes for the rebuilding. The $80,000 expense must be capitalized -- that is, it can't be deducted using Section 179 because it is an improvement -- not a normal repair. Under the tax code, metal-fabricating machinery must be deducted over five years.ome types of expenditures are deductible in the year they are incurred but others must be taken over a number of future years. The first category is called current expenses, and the second capital or capitalized expenditures.