Repaved parking lot

[JT2307]

Client had parking lot repaved cost of $22,000. Would this fall under new regs of writing off as repair and maintenance?

[Rapid Robert]

Client had parking lot repaved cost of $22,000. Would this fall under new regs of writing off as repair and maintenance?

Where exactly did you get stuck with applying the regs? There are many flow charts available, which while not authority, at least aim you in the correct general direction. You could even try starting with page 7-6 of TheTaxBook.

I mention this because your question provides no where near enough facts to allow anyone to provide a complete and accurate answer.

[JT2307]

Vague

Sorry I was a bit vague - would repaving a parking lot be expensed or do I need to capitalize? I believe I will have to capitalize.

[Uncle Sam]

As Rapid Robert mentioned - the decision to expense or capitalize is an independent case by case decision depending upon the circumstances that caused the repaving. Was it an unsafe driveway where most of the driveway was effected, or was it a group of small patches that the owner decided to redo a whole job? Would it have increased the value of the property for real estate calculations over a long term? These are decisions you need to consider, as well as others I haven't mentioned that you need to ask your client, and document what you've learned in the process. It isn't a simple yes/no answer.

[taxea]

Sorry I was a bit vague - would repaving a parking lot be expensed or do I need to capitalize? I believe I will have to capitalize.

This could be considered maint/repair if the materials used were not a upgrade of the original materials.