Is a new storage shed for a rental a captial improvement?

[charjean47]

Purchased a used storage shed for $200.  Paid $75 for a ramp.  Paid $300 to move it.  Is the $575 a capital improvement?

[Leonard · Accepted solution]

No the  $575 for the storage shed is not considered a capital improvement for your rental property.

[charjean47]

Could you educate me on why it is not considered a capital improvement?

[charjean47]

The reason I am asking this question is to learn.  The $575.00 needs to be accounted for since it was money out of the pocket.  If it is not a capital improvement, I don’t understand how it could be a repair or qualify for any other catagory.