What You Need to Know about the Repair Regulations and Improvements

Through a thorough analysis of your expenses for repairs and maintenance, ETS 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 as defined by IRS Code Sections 162 and 263a.

Deductible Repairs and Maintenance Expenses May Include:

  • Roof Repairs
  • Replacing Lighting
  • Resurfacing Parking Lots
  • Replacing Doors and Windows
  • Resurfacing Interior or External Floors
  • Painting (Interior or Exterior)
  • Replacement of HVAC

If you perform regular maintenance and repairs to your assets, you may be able to recapture thousands of dollars by reclassifying improperly classified capital expenses as deductible costs to accelerate depreciation. Through IRC Section 481 (a), routine and incidental repair and maintenance costs may be adjusted to reduce taxable income in the current tax year and increase any net operating loss (NOL) for a potential carry-back.

As skilled and qualified professionals in R&M Studies, ETS will provide an analysis of your capitalized remodeling costs to uncover significant tax deduction opportunities. Contact us today to start your repair and maintenance study.

Watch this R&M video to learn more:

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Engineered Tax Services

Engineered Tax Services

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