Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 4, 2024 4:23:48 PM

Interior drain tile system with a sump pump was installed in a rental. Is it considered an improvement or maintenance?

0 1 540
1 Replies
Expert Alumni
Mar 4, 2024 7:56:26 PM

This would be an improvement and depreciated over 27.5 for the rental.

 

According to the IRS:

  • Are generally restorations to your building property because they're replacements of major components or substantial structural parts of the building structure. As a result, these replacements are capital improvements to the residential rental property.
  • Are a separate asset with a new placed-in-service date and are in the same class of property as the residential rental property to which they're attached.
  • Are generally depreciated over a recovery period of 27.5 years using the straight line method of depreciation and a mid-month convention as residential rental property.