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.
Revenue Ruling 71-475, 1971-2 CB 304, provides that advertising, maintenance, and upkeep costs related to unimproved, unproductive property cannot be capitalized under Section 266. I think accounting fees in the instance are even less closely connected with the property than the expenses that are the subject of Revenue Ruling 71-475.