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Level 1
posted Mar 13, 2021 4:56:14 AM

If I have owned a rental property for 17 years and repainted and replaced the flooring last year - are these improvements or repairs/maintenance?

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1 Best answer
Expert Alumni
Mar 13, 2021 5:14:32 AM

You have one of each.  The repainting would be considered a repair and you can deduct the cost as a rental expense.  The new flooring would be considered an improvement and you would depreciate the cost as an Asset.

 

In general, a repair maintains the property in its 'as-is' condition or restores it to its 'as-was' condition.  An improvement makes the property more valuable or extends the useful life of the building.

 

Take a look at the following TurboTax article for more information:  How do I handle capital improvements and depreciation for my rental?

1 Replies
Expert Alumni
Mar 13, 2021 5:14:32 AM

You have one of each.  The repainting would be considered a repair and you can deduct the cost as a rental expense.  The new flooring would be considered an improvement and you would depreciate the cost as an Asset.

 

In general, a repair maintains the property in its 'as-is' condition or restores it to its 'as-was' condition.  An improvement makes the property more valuable or extends the useful life of the building.

 

Take a look at the following TurboTax article for more information:  How do I handle capital improvements and depreciation for my rental?