upgrades may be capital outlays If ship survives as a ship repair (such as cargo walls) REPAIR= wear and tear caused by physical use CAPITAL OUTLAY = money used to acquire assets, upgrade assets Cost of repair change the nature of the expense doesn’t BUT replacement of interchangeable pieces (such as a boiler) is a capital outlay Bound by Vancouver Tug Perhaps because boilers are depreciable at a different rate? if payments substantially upgrade the value of the capital asset then the improvement is a Shabro: capital improvement This includes changes designed to create an enduring benefit/improvement Subsidence caused damage- only floor replacement was capital outlay, the rest was repairs (tile, wiring, drains) Questionable must consider the MIND of the TP Gold Bar: Did the TP intend to make the property different or better, or simply return it to pre damaged state? Even a one-off substantial repair can be a repair But be careful- often improvements are a choice If it is an and the repair is there is less choice/options wont be emergency forced, penalized for repairing to better technology (bricks fell off, replaced whole wall with different technique) Not bound to use the same materials
upgrades may be capital outlays If ship survives as a ship repair (such as cargo walls) REPAIR= wear and tear caused by physical use CAPITAL OUTLAY = money used to acquire assets, upgrade assets Cost of repair doesn’t change the nature of the expense BUT replacement of interchangeable pieces (such as a boiler) is a capital outlay Bound by Vancouver Tug Perhaps because boilers are depreciable at a different rate? Shabro: if payments substantially upgrade the value of the capital asset then the improvement is a capital improvement This includes changes designed to create an enduring benefit/improvement Subsidence caused damage- only floor replacement was capital outlay, the rest was repairs (tile, wiring, drains) Questionable Gold Bar: must consider the MIND of the TP Did the TP intend to make the property different or better, or simply return it to pre damaged state? Even a one-off substantial repair can be a repair But be careful- often improvements are a choice If it is an emergency and the repair is forced, there is less choice/options wont be penalized for repairing to better technology (bricks fell off, replaced whole wall with different technique) Not bound to use the same materials