Tag Archive: Capitalization of Property

Final Regs on the Capitalization of Tangible Property

Written by December 17, 2013

The Internal Revenue Code generally requires the capitalization of amounts paid to acquire, produce, or improve tangible property. On the other hand, taxpayers are allowed to deduct ordinary and necessary business expenses, including the costs of certain supplies, repairs, and maintenance. It is not always easy to distinguish between an asset that must be capitalized and depreciated over a number...