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.
Materials and supplies As stated earlier, businesses must generally capitalize expenditures relating to tangible property. Materials and supplies used to improve tangible property must generally be capitalized under the rules for improvements. Other materials and supplies can be deducted as follows: Incidental Materials and Supplies âcan be deducted in the year they are paid (or, incurred for accrual taxpayers). Material and supplies are incidental if they are carried on hand and no record of consumption is kept or physical inventories maintained.