Is sewer fix a repair

[Mark Forest]

Is the $3600 I just spent to fix a broken sewer pipe a repair to expense all this year or a capital outlay to be depreciated?  This cost includes snaking, excavating pipe, and repairs to pipe. I would think it's an expense since the useful life of house is not extended.

[Brandon Hall]

@Mark Forest since it's over $2500, we can't expense under the De Minimis Safe Harbor. So we need to figure out whether it's a Betterment, Adaption, or Restoration.

In this case, I'd call this a Restoration. A Restoration of a Unit of Property (UOP) is capitalized and depreciated.