DianeC958
Expert Alumni

Investors & landlords

Since you replaced the drywall, re-textured and painted, the expense needs to be depreciated as an improvement to the property.

 

From IRS Publication 946

 

If you improve depreciable property, you must treat the improvement as separate depreciable property. Improvement means an addition to or partial replacement of property that is a betterment to the property, restores the property, or adapts it to a new or different use.

 

@candycanepanda

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