It depends. The IRS does allow the expensing of certain items up to $2,500 without having to depreciate them. TurboTax asks questions in the rental interview to help you identify which items to treat as assets subject to depreciation versus current-year expenses.
Rental property is considered a depreciable asset, as are major improvements such as new roofs, landscaping, refrigerators, water heaters, furniture, and so forth. Depreciation lets you deduct the "used up" part of an asset's cost year after year, until the entire cost is used up or you no longer own it. It provides for wear and tear or obsolescence of the property or asset.
Depreciation deducts the asset's cost over time rather than deducting it all at once, as you would when deducting an expense.
Expenses are used to deduct the entire cost of services, utilities, fees, and consumable items (like cleaning supplies, light bulbs, smoke alarms, and batteries).
Deductible expenses include, but aren't limited to:
- Cleaning and cleaning supplies
- Maintenance and related supplies
- Repairs
- Utilities
- Insurance
See this TurboTax help article and this one for more information.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
