Repairs are usually fixes that help keep the property in good working condition and habitable. Although the price is irrelevant, most of my qualifying repairs tend to be under $500 in cost.
Whether you’re fixing a hole in the wall, painting or a unclogging a shower drain, you can deduct the cost of these minor repairs from the current year’s tax liability.
The IRS clarifies in the 1040 Schedule E Instructions that repairs in most cases do not add significant value to the property or extend its life.
Anything that increases the value of the property or extends its life is categorized as a “capital expense” and must be capitalized and depreciated over multiple years. Meaning, you can only deduct a small but even portion of these expenses in the current tax year.
IRS Publication 527 has alot of useful information for you and your rental property.
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