Skip to main content
Employee
February 1, 2024
Question

Landscape work at rental property - Repair or improvement?

  • February 1, 2024
  • 1 reply
  • 0 views

The lawn of our rental property was inundated with sticker burrs/grass burrs when we bought it. After fighting the stickers for 2 years, our landscaper strongly recommended complete scraping of the property and re-sodding - which we agreed to. We installed a sprinkler system during the sod replacement project. While the heavy equipment was on-site, we also paid him to remove and replace trees which did not survive the deep freeze from the prior year.  

 

Are these expenses considered repairs or improvements? 

1 reply

February 1, 2024

These are improvements.  Residential real estate with a life expectancy of 27.5 years.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
Rick19744
Employee
February 1, 2024

@TomK2023 wouldn't this be land improvements depreciated over 15 years?

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.
February 1, 2024

Yes, an argument can be certainly be made for the 15-year depreciation classification, but opting for 27.5 years is the more conservative option.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"