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Returning Member
posted Apr 11, 2024 5:07:48 PM

How to deduct earthquake retrofit expenses for my rental property in California?

I plan to hire a licensed contractor to do earthquake retrofit (bolt the house to the foundation) on my rental property which is at risk of falling off its foundation in a major quake. 

 

The cost will be $20-30k which is more than all the rents I get in a year. 

 

Is that possible to deduct that over many years?  Does anything change if I take a loan to do this work?

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1 Replies
Level 15
Apr 11, 2024 5:34:33 PM

Yes, it is a capital expense which would be depreciated over time. Any interest paid on the loan to do the work is a business expense.