I'm trying to find rules that will help me determine if the painting part of a construction project can be capitalized. We are also thinking that this also applies to carpet, are you inclined to agree with me?

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The answer to your question depends on the context of construction project, such as whether it’s new construction or directed towards the maintenance of an asset, what is being 'constructed,' and how it will be used in the business. If you are constructing a building for use by the business (manufacturing plant or office building), then generally painting could be considered part of the project and would be capitalized with the other construction costs. If the painting is being done to maintain an existing asset, then it would most likely be a current expense charged to maintenance. We encourage you to consult your accountant who is familiar with your company and specific project so that it’s properly recorded in your financial records.

The same approach would be used for carpet. Again check with your accountants who know your specific project, so that you do account for it properly.

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