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.
A taxpayer must. capitalize all the direct costs of an improvement and all the indi-. rect costs (including, for example, otherwise deductible repair. costs and certain component removal costs that are not disposi-. tions for federal tax purposes) that directly benefit or are in-. curred by reason of an improvement.