If you improve depreciable property, you must treat the
improvement as separate depreciable property.
Per IRS Publication 946 Chapter 1
Page 12 Improvement means an addition to or partial replacement of property that is a betterment to the property, restores the property, or adapts it to a new or different use. See section
1.263(a)-3 of the regulations.
You generally deduct the cost of repairing business
property in the same way as any other business expense.
However, if the cost is for a betterment to the property, to
restore the property, or to adapt the property to a new or
different use, you must treat it as an improvement and depreciate it.
See the screenshot below.
Related information:
Sign In
