Should I expense or depreciate an improvement such as a new front porch? I may intend to sell the rental this year.

[diy_user]

Should I expense or depreciate an improvement such as a new front porch? I may intend to sell the rental this year. Thank you.

[AmyT · Accepted solution]

Any improvements that cost more than $2,500 and add to the value of the property or significantly increase its life are required to be capitalized (treated as assets) and depreciated.

You are able to expense any improvements that cost $2,500 or less.

TurboTax will walk you through adding any assets that you are required to capitalize and help you select the most appropriate useful lives and depreciation methods.

[diy_user]

Thank you Amy.

[AmyT]

You're welcome.  Good luck with the property!