Originally Posted by flash_os
Can I put required bathroom renovation as expense and not as Depreciation?
Must note: Bathroom was ruin by previous tenant, therefore required bathroom renovation.
No I do not think so; The general rule is that the cost of ?repairs? incurred to maintain your rental properties may be deducted from each property?s taxable income in a given year. However, some repairs are considered ?improvements? in which you?re not allowed to deduct the entire expense immediately. Repairs are usually one-off fixes that help keep the property in good working condition and habitable. Although the price is irrelevant, most of my qualifying repairs tend to be under $500 in cost. WHILE Anything that increases the value of the property or extends its life is categorized as a ?capital expense? and must be capitalized and depreciated over multiple years. Meaning, you can only deduct a small but even portion of these expenses in the current tax year