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Categories explained: Building Repairs & Maintenance ๐Ÿข ๐Ÿ› ๏ธ
Categories explained: Building Repairs & Maintenance ๐Ÿข ๐Ÿ› ๏ธ
Steven Anderson avatar
Written by Steven Anderson
Updated over a week ago

This includes all the costs you incur when bringing an asset of the company back to its earlier condition or to keep it operating at the level it has always performed. Remember that you are not allowed to include improvements to assets here, they must be added to the original cost of the asset.

What's included

Re-painting the truck after getting in a minor accident.

Oil changes or tune ups.

What's not included

Improvements paid to enhance the quality or function of a fixed asset - These must be capitalised.

How is it taxed?

Be careful not to include improvements or upgrades to your assets within this account. For example if you were to add a hydraulic lift to the company truck, this would be classed as pimping it up. The amount spent would need to be capitalised and depreciated over the truck's remaining useful life.

Tax tips

If the repair serves to put the item back to its original state a deduction may be claimed. If the repair is in fact an alteration or improvement of an asset no deduction will be allowed.

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