Yes, a new roof is a capital improvement, but paint, interior and exterior, is always considered repairs and maintenance.
You can include all of the costs including architectural design and management fees for a bathroom remodel as long as fixtures were replaced. This is considered an improvement.
Repairing and replacing the damaged structure from pest damage would be considered as an improvement. See the following from the IRS for more information.
The IRS will promote a repair to a capital improvement in three ways, each of which must provide “a permanent improvement on the value or the life of the property,” Wasserman says.
These include:
- A betterment, such as adding on a room or curing a defect: In one example from the IRS, if you live in an area prone to earthquakes and install expansion bolts to anchor a building frame to its foundation, that’s a betterment. It provides structural support.
- A restoration: such as any costs to restore a property to its original state after a loss or damages, such as a fire.
- An adaptation i.e., any cost of converting a property to a different use: If you remodel a residence to use it as a rental, that’s an adaptation. Likewise, if you install a wheelchair ramp or wider doorways — or renovate the bathroom to accommodate a disability — those are adaptations and capital improvements.
And refinishing floors is also a capital improvement.
@rhodion
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