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What is the IRS treatment for replacements versus repairs? Betterments are expensed because they do not extend the life of the asset. Repairs are capitalized

What is the IRS treatment for replacements versus repairs? Betterments are expensed because they do not extend the life of the asset. Repairs are capitalized because they do occur on a recurring basis. A company can make a policy choice on the treatment of these expenditures. Replacement of significant asset components ale capitalized

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