- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
That is true.
Repairs are only expensed when it is a rental.
If you stop renting it, you will need to report that it was "Converted to Personal use".
At that time the rental will no longer be depreciated but you will need to know all the depreciation you took (or could have taken) on the rental and that total will need to be reported when you do sell.
Repairs that don't add real value cannot be expensed nor added to the basis/value since they will be considered as bringing the property back to the original condition.
If you make a major remodel, you can add that to the basis, but only materials, not your labor.
When you sell, you will need to report it as a sale of a business asset and "Recapture Depreciation".
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
March 20, 2025
5:34 PM