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.
However, a taxpayer can elect, on a transaction-by-transaction basis, to capitalize employee compensation, overhead or both. If both real and personal property are acquired in the same transaction, the repair regulations provide for allocation of acquisition costs between the property types.