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Rental Property Improvement and Repair expense

Forum|Forum|4 years ago
April 7, 2022
2 replies
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In January, I had 13 of 22 windows replaced in my rental property.

It was discovered that 4 of the windows was missing window headers. Fortunately, the windows installers were able to add the missing headers before installing the associated windows.

Although my receipt for the work items has a separate invoice for the header repair work, I am thinking that I cannot/should not be claiming this a repair expense.

Instead, should I be adding this header repair cost amount with the cost of the new windows and treating the total amount as a capital improvement depreciated over 27.5 years for a residential property?

Not A Product Question

Best answer by PattiF

Yes, you should add the header replacement expense to the window replacement expense and depreciate the total expense as a capital improvement for 27.5 years.

P

PattiFAnswer

Yes, you should add the header replacement expense to the window replacement expense and depreciate the total expense as a capital improvement for 27.5 years.

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M

Michael_NCAuthor

Thanks for the confirmation.

Carl11_2

Employee

Instead, should I be adding this header repair cost amount with the cost of the new windows and treating the total amount as a capital improvement depreciated over 27.5 years for a residential property?

Spot on exactly right. 🙂 Remember to keep those receipts "forever".