I am repairing after a rental disaster. 2 appliances and carpet and linoleum. painting etc. Any help on what I can deduct straight up, and what I should depreciate
repairing after a rental disaster.
Repairing is the key to your tax treatment.Replacing destroyed appliances, carpet and linoleum are an asset and depreciated 5 years. Most repair costs that are results of the tenant destructive actions are fully tax deductible in the year incurred.
You still have to be a bit careful there though that you do not do a betterment [new IRS watch word].If by chance you decide to make an improvement to the building at the same time,repairs and betterments done at the same time the whole cost would be depreciated as one improvement depreciated same as original property 27.5 years.