There are many tax cases out there regarding real estate improvements/maintenance and the ability to expense instead of capitalize.. Not sure of the details of this case but there is one out there for pointing/white washing (City National Bank, 11 T.C.M. (CCH) 411 (1952).
I recently defended a client on an IRS audit regarding the resurfacing of a parking lot (cost in excess of 40,000) that we expensed. I cited the Toledo Home Federal Savings and Loan case form the 1960's and the agent excepted the write off.
As we all know, this does not always happen but my philosophy is that if you have sufficient documentation (supporting cases, tax law interpretation etc.) in support of your tax position then there is no reason not to proceed. Worse case - you lose but since you had the supporting documentation, you usually will not be assessed a penalty.
Vincent J. Preto, CPA
Senior Partner
Wagner & Zwerman LLP
450 Wireless Blvd.
Hauppauge, NY 11788
Tel. (631) 777-1000 Ext. 340
Fax (631) 777-1008
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