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:

Author

Engineered Tax Services

Engineered Tax Services

Recent Posts

HVAC

Cutting Costs With Energy-Efficient HVAC Systems for Commercial Buildings

As a commercial building owner, you already know how high energy costs can be. If you’re looking to shave down expenses and improve your bottom line, switching to an energy-efficient HVAC system may be exactly what you need. The U.S. Small Business Administration recently found that HVAC systems can account for 40% of a building’s

Read More »
IRS notice

Understanding IRS Notice N-2023-67

The U.S. tax code is an evolving landscape, especially when it comes to sustainability and energy-efficient housing. That’s why IRS Notice N-2023-67 has become a focal point for professionals in the construction and real estate industries. If you’re wondering what this notice entails and how it can affect your business or personal finances, you’re in

Read More »
logistics tax strategies

Why Cost Segregation Is a Key Logistics Tax Strategy 

In the demanding world of logistics, where every cent counts, cash flow optimization is crucial. Sure, it’s essential to trim expenses and enhance efficiency, but have you ever considered that a fresh take on your tax strategy could also lead to serious savings?   This is where cost segregation enters the picture. This blog post is

Read More »

Contact Us