@bdickie87101 wrote:
I am in a similar situation as an owner of a rental unit that was levied a special assessment - However I have a bit of a mixed cost breakdown.
Our building envelope (exterior cladding from 1962) no longer met city code requirements and had to be replaced in its entirety. Given the nature of the work, the condo board decided to take the opportunity to replace the balcony doors and windows.
I interpret this as split, the windows and doors would be an improvement and the exterior envelope would be a restorative repair.
I would consider the replacement of the entire cladding (the exterior protection system) because of deterioration and code changes to be a classic definition of a betterment (improvement) rather than a repair. If you want to expense the cost rather than depreciating it, you may want to consult your own tax advisor.
https://www.thetaxadviser.com/issues/2021/oct/capitalized-improvements-vs-deductible-repairs.html
