Skip to main content
March 12, 2023
Question

Annual election for improvements question

  • March 12, 2023
  • 1 reply
  • 0 views

Hi,

I had rental property which I sold last year. Before selling I've made some improvements to the property, and it cost me less than $10000. Now, I'm doing taxes and get option to choose election for improvements. Can you advice what option is better in my case?

Thank you.

1 reply

March 13, 2023

It depends since you disposed of the property, expenses will reduce your taxable rental income for the year.  However, if you choose to expense these items rather than depreciate them, this election will apply to all of your businesses, rental properties, or farms.