$70K is more than minor repairs. it's almost 20% of the sales price. thus you have to look to the expenditures to see which are repairs and which are improvements
Repairs to Your Rental Property
Repairs are usually one-off fixes that keep your property in its current condition. While cost isn’t a factor in determining a repair or an improvement, repairs are often small and inexpensive. Common repairs might include basic maintenance such as unclogging a shower drain or patching a hole in the wall. According to the IRS, most repairs don’t add significant value to the property or extend the life of the property. The repair simply maintains the home in its current state.
Improvements to Your Rental Property
Anything that increases the value of your rental property or extends its life is considered a capital expense. As such, it must be capitalized and depreciated. These improvements are usually more labor-intensive and expensive than repairs.
