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?

[sunancy]

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)?

[Leonard]

Yes, this is a capital improvement to your rental property and the cost will be added to your adjusted cost basis of the rental property.  Improvements are depreciated using the straight-line method, which means that you must deduct the same amount every year over the useful life of the roof. The IRS designates a useful life of 27.5 years, so, divide the total cost of the roof by 27.5 to reach the amount you are able to deduct each year.