Retail and Restaurant Establishments Get Relief from the Tangible Property Regulations:

The IRS has provided a safe harbor accounting method that taxpayers in the retail and restaurant industries can use to determine whether costs paid to refresh or remodel a qualified building are deductible repairs and maintenance expenses under IRC Sec. 162(a), or if they must be capitalized under IRC Sec. 263(a) or IRC Sec. 263A. The safe harbor method minimizes the need to perform a detailed factual analysis to determine whether each remodel-refresh cost is for repair and maintenance or for an improvement. Under the safe harbor, a qualified taxpayer deducts 75% of its qualified costs as repairs and maintenance, and capitalizes the remaining 25% of its qualified costs. The revenue procedure is effective for tax years beginning after 2013. Rev. Proc. 2015-56, 2015-49 IRB.