sunancy
New Member

Do I need to capitalize a rental expense of $16,000 to replace the underlay of leaky roof? Had to relay tiles. Is this a repair or an improvement? Count as new roof?

We had to do the work because the roof was leaking. The workers took the old tiles off, replaced the cloth underneath, and put the old tiles back on.

If this must be capitalized, what category does it fall under (over how many years must it be depreciated)?