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posted Jun 1, 2019 9:48:53 AM

Do I need to capitalize $6500 spent to re-sod, replant shrubs, and repair (not replace) sprinklers for a lawn? Not sure if this counts as new landscaping or repair.

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Expert Alumni
Jun 1, 2019 9:48:56 AM

I assume you asking about repairs and improvements made to a rental property you own.

Lawn care and repairs and maintenance, such as the sprinkler replacements you installed, are expensed because these costs keep the property in its original condition

You should add the landscaping project (new sod and shrubs) as an asset, within the rental property and take depreciation. You'll be able to choose to take special depreciation or section 179 depreciation and deduct the amount in full (or choose to deduct it over the useful life)

Improvements distinguish themselves because they add value to the property and must be "capitalized" and then you take depreciation. For more info on this difference, this article is providing a good summary HERE.

1 Replies
Expert Alumni
Jun 1, 2019 9:48:56 AM

I assume you asking about repairs and improvements made to a rental property you own.

Lawn care and repairs and maintenance, such as the sprinkler replacements you installed, are expensed because these costs keep the property in its original condition

You should add the landscaping project (new sod and shrubs) as an asset, within the rental property and take depreciation. You'll be able to choose to take special depreciation or section 179 depreciation and deduct the amount in full (or choose to deduct it over the useful life)

Improvements distinguish themselves because they add value to the property and must be "capitalized" and then you take depreciation. For more info on this difference, this article is providing a good summary HERE.