I bought a rental property in November and it needed about 45k in renovations. These include things that I personally would classify as repair, such as painting the units, but also larger ticket items that may fall under “improvement” such as replacing all the windows and building a new deck and replacing all kitchen cabinets and appliances.
I made a 12k down payment in December 2024 to cover material cost and will pay the labor cost once the project is done early 2025.
How do I handle this tax wise for 2024 and 2025?
