Garage Replacement for Rental Property

[ecv50]

we repaired & replaced a garage door on our rental for $3k due to normal wear & tear. it was of similar type and quality. do we list it as an expense or an investment?

[SabrinaD2]

You can likely list ‌the garage door replacement as an expense. Since it was due to normal wear and tear and the new door is of similar type and quality and doesn't increase the value of the rental property, it should qualify as a repair expense rather than a capital improvement.

Key points include:

• The costs of repairing and maintaining residential rental property are generally deductible for the tax year you pay for it. This includes expenses required to keep the property in good condition, such as fixing a leaking faucet or painting a room.
• Improvements, which add to the value of the property, aren’t immediately deductible. Instead, their costs are subject to depreciation and deducted gradually over a period of years.
• For more details, you can visit the IRS page on residential rental property: Publication 527, Residential Rental Property (scroll to page 4&5 to review types of expenses to deduct)