[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.162-4]

[Page 776]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.162-4  Repairs.

    The cost of incidental repairs which neither materially add to the 
value of the property nor appreciably prolong its life, but keep it in 
an ordinarily efficient operating condition, may be deducted as an 
expense, provided the cost of acquisition or production or the gain or 
loss basis of the taxpayer's plant, equipment, or other property, as the 
case may be, is not increased by the amount of such expenditures. 
Repairs in the nature of replacements, to the extent that they arrest 
deterioration and appreciably prolong the life of the property, shall 
either be capitalized and depreciated in accordance with section 167 or 
charged against the depreciation reserve if such an account is kept.