Are equipment rental costs used to improve a rental property fully deductible in the period? Or are they capitalized as a part of the overall improvement?

[mjlax50]

Are equipment rental costs used to improve a rental property fully deductible in the period? Or are they capitalized as a part of the overall improvement?

[Coleen3 · Accepted solution]

Rental of equipment. You can deduct the rent you pay for equipment that you use for rental purposes. However, in some cases, lease contracts are actually purchase contracts. If so, you cannot deduct these payments. You can recover the cost of purchased equipment through depreciation. 

https://www.irs.gov/pub/irs-pdf/p527.pdf