May I claim these improvements as expenses?
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