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March 9, 2025
Question

Rental Unit - Repairs and upgrades

  • March 9, 2025
  • 1 reply
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After my tenants moved out, I replaced carpets, curtains, countertops in kitchen and bathroom, did the normal re-keying, stove light bulb, refrigerator filter etc.  After the unit remained empty for two months, I decided to move in.  Can I still deduct those upgrades as it was technically still a rental unit?

    1 reply

    March 9, 2025

    Yes, you can deduct the costs of your repairs and capitalize the costs of your improvements (expenditures greater than $2,500) if you made those improvements with the intention of renting the property again.  If you actually attempted to rent the property after the improvements that would show an intent to rent it.  

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