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What is the difference between entering new roof or flooring in rental expense compared to rental assets?

 
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DanielV01
Expert Alumni

What is the difference between entering new roof or flooring in rental expense compared to rental assets?

It depends.  The treatment is different for improvements as compared to repairs.  Certain types of expenses (such as a new roof) are not allowed to be expensed (full deduction for the expense at one time); they must be capitalized or depreciated.  Repair expenses may be expensed, or claimed at one time.  The difference between an improvement and a repair is that an improvement raises the value of the home, whereas a repair maintains the current value.  Here is an FAQ that provides more information (additional embedded links contain additional information):  https://ttlc.intuit.com/replies/4209855  

In the case of an improvement (such as a major room renovation, for example), these expenses must be depreciated over a longer period of time than other rental assets, such as furniture, for example.  TurboTax will help you select the correct treatment when you enter in all of the information on each component (name given to an improvement) or asset.

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1 Reply
DanielV01
Expert Alumni

What is the difference between entering new roof or flooring in rental expense compared to rental assets?

It depends.  The treatment is different for improvements as compared to repairs.  Certain types of expenses (such as a new roof) are not allowed to be expensed (full deduction for the expense at one time); they must be capitalized or depreciated.  Repair expenses may be expensed, or claimed at one time.  The difference between an improvement and a repair is that an improvement raises the value of the home, whereas a repair maintains the current value.  Here is an FAQ that provides more information (additional embedded links contain additional information):  https://ttlc.intuit.com/replies/4209855  

In the case of an improvement (such as a major room renovation, for example), these expenses must be depreciated over a longer period of time than other rental assets, such as furniture, for example.  TurboTax will help you select the correct treatment when you enter in all of the information on each component (name given to an improvement) or asset.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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