I am not sure why everyone is so fixated on expensing capital improvements,
There are a few scenarios where it makes sense. For example, when you purchase a new dishwasher, that gets depreciated over 5 years. I can get a dishwasher for around $300. That depreciated over 5 years is only $60 a year. That has absolutely not one single penny of impact on my tax liability each year. But if I can expense it, that's $300 I can deduct from my taxable income *permanently and forever*.
Now if I depreciate it, weather I do so over 5 years or take the special depreciation allowance and take all the depreciation in the first year, it's true that it adds to my cost basis. But for $300? Get real. On top of that, when I sell the property I am required by law to recapture all depreciation taken and pay taxes on that recaptured depreciation in the year of the sale. Another downside is that recaptured depreciation adds to my AGI. That can have the potential to knock me up into the next higher tax bracket.
So with something like a kitchen appliance, I'll just expense it and be done with it forever.
