Replaced rain gutters around all 3 exterior walls of 1st floor of split level. Total over $2300. Was the money spent for home improvement or not?

[billiv]

Old gutter was leaking, damaged boards behind gutter, in 2 places. All board for that complete gutter section was replaced

[Carl]

There's no question this meets both requirements to be classified as a property improvement.

 - The improvement becomes "a material part of" the property.

 - The improvement add "real value" to the property. (A qualified/licensed property appraiser will appraise the property at a higher value, than they would had the improvement work not been done.)

[yupod]

@Carl, is there a potential to use "Safe Harbor Election for Small Taxpayers" to deduct instead of the capitalization? It's likely to be below the 2% of the building's basis. 

[ThomasM125]

@yupod Section 263(a) can apply to tangible real property, so if the expenditures were under $2,500 they would qualify for expensing. You can read more here:

Tangible property regulations