topic Can I deduct foundation repair on a rental property? in Investors & landlords

Can I deduct foundation repair on a rental property?

xue_yh — Fri, 18 Sep 2020 23:40:35 GMT

I have done half of the foundation repair when the tenant moved in. Can I deduct half the cost as a house repair?

Re: Can I deduct foundation repair on a rental property?

mellish7777 — Sat, 19 Sep 2020 01:34:40 GMT

Capitalize improvements and deduct repair expenses.....you can't deduct repairs before the property is available for rent though.

Re: Can I deduct foundation repair on a rental property?

Carl — Sat, 19 Sep 2020 13:51:53 GMT

Understand that for repairs, it does not matter when the tenant moved in. Reparis incurred after the property was "available for rent" are deducted as such. Property improvements are capitalzed and depreciated over time regardless of when that property improvement was done.

More than likely your foundation repairs are property improvements. But only you can determine that. It depends on just what was done, and what it cost.

Re: Can I deduct foundation repair on a rental property?

xue_yh — Sat, 19 Sep 2020 22:13:56 GMT

Thank you Carl for your answer.