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March 8, 2023
Question

Rental Property - Expense in Schedule E verses Depreciation asset

  • March 8, 2023
  • 1 reply
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Hi

I had a few expenses on rental property.   Should these be included in Schedule E, or added to cost basis for depreciation, or both?

Property purchased June 2022 with tenant.  Tenant left in October, performed following in November 22

a/ Replace a basement door 

b/ Replace front porch carpet

c/ Painting

Thank you

 

 

1 reply

JohnB5677
March 8, 2023

Yes, you should include all of the above 3 items as expenses and not to the cost basis.

 

This article, although for homes has the same criteria for capitalized expenses.  Home Improvements and Your Taxes

Also see IRS Publication 527

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