IRS Gives a Road Map for Audits of Repair and Maintenance Expenses

February 9, 2011

The issue of whether maintenance costs are deductible as incidental repairs or must be capitalized under IRC §263A continues to trip up taxpayers, despite guidance and proposed regulations from the Internal Revenue Service. Recently, the IRS issued an audit-technique guide that gives insight into how it will examine taxpayers’ treatment of repair and maintenance costs.