Case Study

Green inc capitalized all $4M of “renovation” costs to their building four years ago. KBKG engineers find that $300,000 was used to replace certain windows, asphalt patchwork, painting, roof tiles, some plumbing fixtures and one HVAC unit. KBKG determines all these costs are repair expenses.

Results: Filing Form 3115 and claiming an additional $266,985 of deductions on current year return.