Cap Ex? or just maintenance?

[Andrew Magoun]

 I just had the sewer line re-lined at one of our properties. Does this count as a capital expense/improvement? or is it merely maintenance?

[Brandon Hall]

@Andrew Magoun what was the total cost? If greater than $2,500, it's capex. If less than $2,500, the De Minimis Safe Harbor will apply.

We report maintenance in accordance to the new Maintenance Safe Harbor rule which says something along the line of "if you expect to perform the repair twice within a ten year period, classify the repair as maintenance."