The expense of adapting an existing asset to a new or different use must be capitalized to the cost of the asset for tax purposes.

Name: The expense of adapting an existing asset to a new or different use must be capitalized to the cost of the asset for tax purposes.
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According to IRS regulations, the cost of adapting an existing asset to a new or different use should be capitalized and added to the cost of the asset for tax purposes. This cost can be depreciated over the useful life of the asset.

The Expense of Adapting an Existing Asset to a New