Renting out Your Pool - Are repairs a deductible expense?

[TBTINT18]

There is a new Gig Economy Application called "Swimply" where you can schedule your pool to be rented by paying guests. There are of course deductible expenses such as chemicals and maintenance, but what if the pool requires extensive repairs to be useable? Is the cost of the repairs a deductible expense?

[SoniaH]

Hi there. 

Depends on the extent of the repairs. If it a simple repair, then yes. If it a major remodel of the pool, then the repair would actually be capitalized and depreciated. 

Here is a link that might help:

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/rental-repair-vs-impr...

[TBTINT18]

The repair was extensive ($11K). In order to capitalize the expense, would it be best if the rental the entity were setup as an LLC or would that be necessary?