Motor replacement

[Gretel]

Would you consider a replacement of a motor in an old car an improvement?

[ATSMAN]

Would you consider a replacement of a motor in an old car an improvement?

I would consider it Restoration. Replacement of a part or a combination of parts that comprises a major component (or significant portion of a major component for building property) or substantial structural part.

Therefore capitalize.

[taxea]

if we are talking about a business vehicle, I say it is a repair/maintenance item ordinary and necessary to maintain functionality of the vehicle.

[Jiggers]

if we are talking about a business vehicle, I say it is a repair/maintenance item ordinary and necessary to maintain functionality of the vehicle.

I agree.

But that depends on the cost.

If you are putting a $2,000 motor in a used $4,000 pickup purchased a couple of years ago, I would say depreciate. Sec 179.

If you are putting a $5,000 motor in a $75,000 Tractor over-the-road unit, then you have repairs.

[taxea]

I don't think the cost should be a factor unless the motor is not "like and kind". i.e. if the TP replaced with same motor repair; if it was a super upgrade motor then the excess of the normal repair may have to be depreciated.