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J.K. Lasser's Small Business Taxes 2018 by Barbara Weltman

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CHAPTER 10Repairs, Maintenance, and Energy Improvements

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. 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 or upon the disposition of the property. But there are several important exceptions to this rule, which were created by what tax ...

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