Qualified rental expenses - replacement of windows from single pane to double pain

[parker52]

is replacing windows an expense or improvement?

[FrankF1]

Because the windows are expected to last for an extended period of time and add to the value of the property, you should record them as an improvement and not an expense.

Per the IRS:

"Treasury Regulation § 1.162-4 provides that the cost of incidental repairs which neither materially add to the value of the property nor appreciably prolong its life, but keep it in an ordinarily efficient operating condition, may be deducted. However, this regulation also provides that repairs in the nature of replacements, to the extent that they arrest deterioration and appreciably prolong the useful life of the property, shall either be capitalized and depreciated in accordance with § 167 or charged against the depreciation reserve."

Read more in the article below:

https://ttlc.intuit.com/replies/4209855