It's in the link I provided:
https://www.rentprep.com/landlord-tips/rental-property-deductions/
The key point to remember is that you cannot fully deduct upgrades and improvements unless they are necessary to keep the property in working condition. Examples include:
- Updating windows, door frames, etc. to match local code. This is OK because it must be done for the property to be livable.
After it says costs to match a property to code are deductible, it then says the following:
- Patching a leak in the roof is a necessary repair, but replacing the entire roof is an improvement.
In my case, I am wondering whether there's an exception to that rule as my roof replacement would truly be the cost to match local codes. The whole roof is not to code, yet a full roof replacement is not a "repair".
The link and words italicized above use the standard IRS definition of "repair" to qualify costs to match local codes as deductible.
