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.
All building purchases should be capitalized, but if the cost of any one building is > $1,000,000 there are special rules that apply. For repairs to buildings, if you expect to need such repairs multiple times over 10 a year period, and it costs under $10,000, it can be immediately expensed as repairs.