IRS Reg. § 1.263(a)-3h allows a small TP to expense a capital improvement if:

• $1 Million limit on unadjusted basis – note that unadjusted excludes land, land improvements, and personal property identified through a cost segregation study
• Annual expenses for repairs, maintenance, and improvements, cannot exceed the lesser of $10,000 or 2% of the building’s unadjusted basis
• Annual gross income for the landlord must be less than $10MM for the three preceding tax years.