Rental Expenses

Does the cost of putting a new roof on my rental property a deductible repair ?

Expenses for improvements are treated differently than expenses for repairs and maintenance. Generally, expenses that will last for more than one year will be considered a capital improvement and therefore must be depreciated, as opposed to being fully expensed in the year of outlay. Putting up a new roof or installing a new furnace, paving the driveway, finishing a basement, putting in new plumbing or wiring are examples of capital improvements. Replacing a broken window or painting, fixing leaks or plastering are examples of deductible repairs. Speak to your local CPA about your rental property income and allowed expenses.

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