BROOKWOOD TAX SERVICE

End the Hassle - Hire a Tax Pro!

404-915-6268

Making Improvements to Rental Property
What qualifies as a current deduction and what does not

It is often difficult to determine what repairs and improvements you make to your rental property qualify as a current expense, and what improvements must be depreciated

There is a general rule which states that if the repair merely returns the property to its normal working condition, it’s most likely a current expense. Examples of these types of repairs include replacing light fixtures, windowpanes, torn shingles, or other incidental repairs to your property.

Major improvements such as a new roof, siding, a driveway, extensive renovation, or a new addition are capitalized and depreciated over the life of the building.

Other improvements like new carpeting, furnaces, and air conditioners are also depreciated, but over a shorter time period.

 
 

[Home]  [Site Map]  [Contact Us]

brookwoodtax@mindspring.com
Copyright © 2007 Brookwood Tax Service