J.K. Lasser's Small Business Taxes 2015: Your Complete Guide to a Better Bottom Line

CHAPTER 10 Repairs, Maintenance, and Energy Improvements

1. Ordinary Repairs
2. Rehabilitation Plans
3. Special Rules for Improvements for the Elderly and Handicapped
4. Lists of Deductible Repairs and Capital Improvements
5. Energy Improvements

 

Alert

At the time this book was printed, Congress had not extended numerous breaks for 2014 that had expired at the end of 2013. Check the online supplement in February 2015 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2014 returns.

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. 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.

For further information about deducting repairs, see IRS Publication 535, Business Expenses.

Ordinary Repairs

Deducting Incidental Repairs in General

The cost of repairing property and equipment used in your business ...