This decision, however, says nothing about the propriety of
expensing such repairs on an original tax return.
As approximately 98% to 99% of Alacare's revenues are Medicare reimbursements, Alacare's
expensing policy complies with Medicare guidelines for the capitalization of depreciable assets (contained in the Medicare Provider Reimbursement Manual issued by the Federal Health Care Financing Administration (HCFA)).
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expensing to $15,000 of the remaining $40,000 barrier removal costs for a reduction in tax liability of $5,100 ($15,000 x 34% tax rate).
