J.K. Lasser's Small Business Taxes 2023

CHAPTER 10Repairs, Maintenance, and Energy Improvements

• Ordinary Repairs
• Rehabilitation Plans
• Qualified Improvement Property
• Small Business Safe Harbors
• Rotable Spare Parts
• Change in Accounting Method
• Special Rules for Improvements for the Elderly and People with Disabilities
• Lists of Deductible Repairs and Capital Improvements
• Energy Improvements

Alert

At the time this book was published, Congress was considering tax changes that could affect 2022 tax returns and planning for 2023. Check the online Supplement in February 2023 at www.jklasser.com or www.BigIdeasForSmallBusiness.com to see what changes have been enacted and when they become effective.

Property and equipment generally need constant repairs to keep them in working order. Preventative maintenance—regular servicing of equipment—can cut down on replacement costs by allowing you to keep your current equipment longer. This is so even though the cost of materials and labor in today's economic climate is high. When your computer goes down, a service person is required to make repairs. When the air‐conditioning system in your office building stops working, again, servicing is necessary. If you have property or equipment to which you make repairs, you can deduct these expenses. The only hitch is making sure that the expenses are not capital expenditures. As a general rule, the cost of capital expenditures cannot be currently deducted but instead are added to the basis of property and recovered through depreciation ...