Deductible Repairs Versus Capitalization

Basic Principles

In general, any expense associated with the business with a useful life of less than one year is deductible against gross income.  Depreciation is required if an asset has a useful life of more than one year.  Expenses are current costs, and any cost that produces a benefit lasting for more than one year (such as expenses for improvements that increase the property’s value) is generally not currently deductible.