Repairs and Maintenance

REPAIRS & MAINTENANCE STUDY (see example Assisted Living Facility)

Through a methodical analysis of your expenses for repairs and maintenance, CWA can help

you reduce your tax liability and improve cash flow by properly reclassifying these

expenditures. First, we will identify which asset costs are not properly classified, then

reclassify them as deductible repairs defined by I.R.C §162 and §263(a). Deductible repairs

may include “incidental repairs” that help to maintain efficient operating condition but do not

necessarily prolong its life and material value or adapt the property to a new or different use.

Expenses incurred or paid for incidental repairs and maintenance are not considered as

capital expenditures and may be reclassified to accelerate deductions in the current year.