What Are the Criteria That Determine an Amount as Capital

question 106

Essay

What are the criteria that determine an amount as capital improvement rather than repair and maintenance expense? What is the proper tax treatment of a capital improvement for rental properties?

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Definitions:

Bona Fide Occupational Qualification

A work requirement that is necessary for the normal operation of a particular business or enterprise and may legally exclude individuals from a job based on protected characteristics in certain circumstances.

Disparate Treatment

A form of discrimination that occurs when employees are treated differently based on protected characteristics, such as race, age, or gender, without justification.

Undue Hardship

A significant difficulty or expense imposed on an employer by accommodating an employee's disability or religious practices, under U.S. employment law.

Four-Fifths Rule

Rule of thumb that provides evidence of potential discrimination if an organization's hiring rate for a minority group is less than four-fifths the hiring rate for the majority group.