Investors & landlords
That is always a tricky question. But the bottom line is you should be able to expense those kind of expenses though you may need to make an election for a de-minimis safe harbor.
When you do through the TT rental property interview, under the assets/depreciation section, you will be asked about small improvements or total improvements < $10k/2% of your basis, and if you qualify TT will make the election for you. E.g. if you say you have depreciable improvements > $2.5k you will get this screen:
For background info see these references
https://www.nolo.com/legal-encyclopedia/tips-maximizing-repair-deductions.html
which says in part (repairs are deductible, improvements must be depreciated).
What is the Difference Between a Repair and an Improvement?
Here's the basic rule from the IRS: An expense is for an improvement if it:
- makes a long-term asset much better then it was before
- restores it to operating condition, or
- adapts it to a new use.
In contrast, expenses you incur that don't result in a betterment, restoration, or adaptation are currently deductible repairs.
There is also a "de-minimis safe harbor" that you probably qualify for. details:
https://www.nolo.com/legal-encyclopedia/small-taxpayer-safe-harbor-for-repairs-improvements.html
this describes the safe harbors
