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enatrev
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When my rental home was vacated by the tenants, I did some plumbing & painting repairs as well as replacing old carpet with ceramic tile. Where do I enter this?

Do I enter under repair expenses?

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When my rental home was vacated by the tenants, I did some plumbing & painting repairs as well as replacing old carpet with ceramic tile. Where do I enter this?

The money you spend on your home breaks down into two categories, taxwise: the cost of improvements versus the cost of repairs. 

You add the cost of capital improvements to your tax basis in the house. Your tax basis is the amount you'll subtract from the sales price to determine the amount of your profit. A capital improvement is something that adds value to your home, prolongs its life or adapts it to new uses. 

Installing brand new carpet and replacing all existing plumbing is Improvement.

Repairing existing plumbing or painting the room is Repearing.

Follow this links for additional info regarding Home Improvements and Your Taxes https://turbotax.intuit.com/tax-tips/home-ownership/home-improvements-and-your-taxes/L6IwHGrx6

How do I handle capital improvements and depreciation for my rental? https://ttlc.intuit.com/replies/4791833

Hope its help.


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