Archives for August 2017

We focus on the most important concepts governing what distinguishes a fixed asset from an expense, tax depreciation rules and certain current incentives for writing off capital expenditures. Our focus is the big picture and major planning points when it comes to capital or near-capital expenditures and related expenses. We’ll begin with an emphasis on current deductions – business expenses and the election to expense capital expenditures provided by Section 179. The Relatively New Repair and Maintenance Regulations One doesn’t reach the depreciation details if an item qualifies as an ordinary and necessary business expense under Section 162. Is it an asset or business expense? The tax discussions following this question often focus on supplies, or repairs and maintenance. Generally, taxpayers need to capitalize (call an asset) payments to acquire, produce or improve tangible property but they have an immediate deduction for supplies or repairs and maintenance. There … [Read more...] about Depreciation, Repairs, and Deducting Capital Expenditures