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Real estate improvements

We bought a house for a rental. We removed the carpet and refinished the hardwood floors. Do the associated costs (sand paper, lacquer thinner, polyurethane, etc.) qualify as an improvement? 

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Real estate improvements

If you made all these changes before you made the house available for rent, then they get added into the basis of the house as an improvement.

If  you refinished the floors after the house was made available for rent, then they are an expense, categorized as a repair.

This article explains more about how to categorize expenses for residential rental properties.




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Highlighted
New Member

Real estate improvements

If you made all these changes before you made the house available for rent, then they get added into the basis of the house as an improvement.

If  you refinished the floors after the house was made available for rent, then they are an expense, categorized as a repair.

This article explains more about how to categorize expenses for residential rental properties.




View solution in original post

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