Hello!
My partner and I purchased a duplex in mid-2022. It was vacant on purchase by habitable (prior tenant left before purchase completed). We did work on one side through 2022 and placed the unit in service in Sept 2022 with our first tenant paying rent in October. We ultimately decided to complete an extensive renovation to the other unit in 2023.
I'm assuming the work completed in the other unit in 2023 is classified as a separate improvement that would be depreciated over the IRS' definition for useful life, but wanted to confirm. Does all work get classified as an improvement, or are certain repairs/maintenance/utilities considered expenses incurred?
Thanks!
