topic Do I put a special assessment on our rental property in expenses for rental property? in Investors & landlords

Do I put a special assessment on our rental property in expenses for rental property?

clracs — Sat, 01 Jun 2019 15:20:50 GMT

It depends on the nature of the special assessment. If t...

MinhT — Sat, 01 Jun 2019 15:20:51 GMT

It depends on the nature of the special assessment.

If the assessment is for an expense or repairs and maintenance, you can deduct the special assessment on your rental property as a rental expense.

If you assessment is for an improvement (such as a new roof on a condominium), then you have to capitalize and depreciate it.

Edited 04.11.18 | 12:52 PM

It likely may be a depreciable improvement.

TaxGuyBill — Sat, 01 Jun 2019 15:20:52 GMT

It likely may be a depreciable improvement.

Re: It likely may be a depreciable improvement.

mang108 — Wed, 04 Nov 2020 18:34:45 GMT

Is there a difference if it's a rental vs owner occupied?

Re: It likely may be a depreciable improvement.

Critter-3 — Wed, 04 Nov 2020 18:39:15 GMT

It is not deductible at all on a personal residence.

Re: It likely may be a depreciable improvement.

Opus 17 — Mon, 09 Nov 2020 18:26:59 GMT

@mang108 wrote:

Is there a difference if it's a rental vs owner occupied?

Repairs and maintenance are never deductible on your personal property. That's just stuff you are expected to do to keep your property in good condition.

Improvements are not deducted, but the cost of improvements can be added to your cost basis and may reduce your capital gains when you sell.