If you own rental property: "A repair keeps your property in good operating condition. It does not materially add to the value of your property or substantially prolong its life."
I wonder if the the genius who wrote this ever tried to sell or rent a house with mold, discolored wall board, or sagging ceilings because the plumbing, gutters, or leaks weren't fixed. It might not add value, but if you neglect repairs, you can certain subtract value.
"You can deduct the cost of repairs to your rental property. You cannot deduct the cost of improvements." Improvements you depreciate. And if you understand depreciation, you should be a CPA, not a landlord.
Thursday, February 25, 2010
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1 comment:
umm... I don't see the point here. Improvements are not repairs. Ordinary expenses vs. capital expenditures is pretty standard stuff.
It's called maintenance because it is maintaining value, not increasing it.
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