The costs incurred to remediate the contaminated soil including excavation, transportation, and disposal of the soil should be expensed
. The soil remediation expenditures are incidental repairs that neither materially add to the value of the property, nor appreciably prolong its life, but merely restore the property to its original, pre-contaminated condition.
Alacare was incorporated in 1982; since then, it has expensed
all capital items for which it has paid less than $500.
The material or supplies may be expensed
as purchased by a cash-method taxpayer, if all four of the following criteria are met:
For financial statement purposes, these relocation costs generally are expensed
There are exceptions, however, and many amounts are being capitalized that could be expensed