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.
The classification of an expense as a repair or as an improvement will have a dramatically different impact on your tax liability. A repair or routine maintenance to a capital asset, such as an office building or equipment, may be a business expense that is fully deductible in the year that you incur the costs.ne of the principles underlying the tax rules for deductions is that your income for the year should only be offset by those expenses that contributed to earning that income. Expenses to acquire or improve a business asset that will last longer than a year are not deductible as business expenses.