Skip to Content



Tax alert: 2016 repair/capitalization/depreciation filing update

What's the difference between a repair and a capital expenditure? This article explains.

Every taxpayer that uses tangible real or personal property in a business needs to understand the tax rules relating to the distinction between a repair and capital expenditure, as well as the depreciation of those capitalized expenditures and other depreciable assets that are purchased or produced.

This briefing covers recent developments relating to repair, capitalization, and depreciation as embodied in the final “tangible property regulations,” also known as the “repair regulations.” In addition, significant changes to depreciation provisions, such as bonus depreciation and the Section 179 allowance, were made by the Protecting American from Tax Hikes Act of 2015 (PATH Act) (P.L. 114-113). Many of these changes first went into effect in 2016 and will need to be considered when preparing 2016 returns. This briefing also details these changes.

Many of these changes first went into effect in 2016 and will need to be considered when preparing 2016 returns.

Logo of CCH, A Wolters Kluwer Business

The information provided in this alert is only a general summary and is being distributed with the understanding that Plante & Moran, PLLC, is not renderinglegal, tax, accounting, or other professional advice, position, or opinions on specific facts or matters and, accordingly, assumes no liability whatsoever inconnection with its use.

Related Thinking

June 15, 2022

Family Office Answer Book: A complete guide for family office executives

White Paper 60 min read
June 15, 2022

Shanghai releases post-lockdown economic recovery action plan

Article 3 min read
June 3, 2022

Navigating the new Section 174 as Q2 estimates approach

Article 5 min read