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February 24, 2020
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May I claim these improvements as expenses?

  • February 24, 2020
  • 1 reply
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I am a landlord and my rentals are investments, not a business.  In Turbo Tax Premier, I clicked on Improvements for one of my properties. 

 

This is where I am:

Let's see if you can clim these improvements as expenses.  You can do this if:

The cost of all repairs, maintenance and improvements is less than or equal to the smallest of these limit:

2% of the unadjusted basis of your building or $10,000.  I am aware that I cannot use actual amounts on when I ask a question so I will make an example.

 

For an example:  If I person buys property for $30,000 and that is the unadjusted basis, then 2% of $30,000 would be $600.  So if a person puts on a roof on that costs $3,500, they would not be able to count this improvement as an expense.  True?  $3,500 is larger than $600.  Thanks

 

    Best answer by ThomasM125

    Yes, that is true!

    1 reply

    February 24, 2020

    Yes, that is true!

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