09/16/2026
As you review your business’s 2026 expenditures, pay close attention to work performed on buildings and equipment.
You can generally deduct ordinary repairs and maintenance expenses, but you must capitalize property improvements, including betterments, restorations and adaptations. Safe harbors may allow current deductions for some costs. Certain capitalized improvements may also qualify for a full first-year deduction through bonus depreciation or Sec. 179. Proper classification may affect recordkeeping, potential recapture and state tax deductions.
Contact us to help classify your 2026 expenditures and discuss potential tax-planning moves before year end.