AnnetteB6
Employee Tax Expert

Investors & landlords

The amount you paid in 2019 has already been claimed on your 2019 return as a repair cost.  That may be correct since you said it was for a mixture of repairs and improvements.  Only you and the contractor know how the total should be broken down between repairs and improvements.

 

If it was paid for an improvement instead of a repair, then you would need to amend your 2019 return to remove that deduction from your 2019 return.  The cost of the improvement will be entered on the tax return when the final payment is made and the improvement is complete and placed in service in the rental property.  

 

If there was nothing paid in 2020 with regard to the repairs/improvements you are paying the contractor, then there is nothing to enter on your 2020 return with regard to those costs.  Once the work is complete and you make your final payment, you will enter that amount on that year's tax return, either as a repair or improvement depending on the nature of the work you are paying for.

 

 

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