Tangible Property Repair Regulations

Current IRS tax codes can be extremely nebulous and the frequent changes can be difficult to keep up with. According to the IRS, some expenses incurred by businesses are required to be capitalized and taxed while others can be deducted, potentially saving a business thousands of dollars and increasing cash flow.

How Tangible Property Repair Regulations Affect a Business

If a business must continually provide repairs or maintenance to equipment, it must determine whether or not these upkeeps qualify as deductible expenses or expenses which must be capitalized and are therefore, non-deductible. While the IRS has made recent changes to simplify this process, it can still be very complicated to determine the appropriate way to list such expenses. For this reason, many companies do not realize that they have potentially unrealized cash flow hidden in their books.

How ELB Consulting Helps Increase Cash Flow

ELB Consulting provides comprehensive analyses of a company’s tangible assets as well as its accounting in order to seek out unrealized sources of cash flow through tax deductions. Typically speaking, the IRS requires capitalization of repairs or maintenance that substantially increase the life of the machinery or increase the value of the machinery. However, some forms of repair and maintenance may also be reclassified as deductible. By thoroughly investigating all of a company’s assets and tax filings, ELB Consulting can use its extensive tax code expertise to reclassify repairs and maintenance from capitalized expenses to deductible expenses, possibly saving the company tens of thousands of dollars.

Contact ELB Consulting today for a comprehensive consultation regarding your company’s potential for increased cash flow through a review of its tangible assets repair tax filings.