repairs and maintenance on schedule E

Forum|Forum|1 year ago
December 15, 2024
2 replies
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Own Two family house .We live on first floor and renting a 2nd floor. While being rented celling and wall ON 2ND FLOOR were partially damaged by the leak. Contractor was hired and repaired partially damaged areas and repainted. We were charged $3000.00. How much of this can we deduct in the same year it happened?

Best answer by AmeliesUncle

You can deduct the full amount paid for the damages to the rental area.

However, if you also paid anything to fix whatever caused the leak, that could be a different answer, depending on the details.

M-MTax

You can probably deduct 50% of the repair cost depending on how you've been splitting expenses since you live on the first floor of what is presumably a two flat.

DubosticaAuthor

I thought I SHOULD DEDUCT ALL $3000.00 Since happened on floor that's being rented ?

M-MTax

Yes, except you hold 50% of the property for personal use.

Note that you would be unable to deduct any part of the repair if you held ALL of the property for personal use.

AmeliesUncleAnswer

You can deduct the full amount paid for the damages to the rental area.

However, if you also paid anything to fix whatever caused the leak, that could be a different answer, depending on the details.

M-MTax

I view this a little differently.

The roof covers the entire structure and only half of that structure is being rented. The roof would have to be repaired even if the second floor that is rented was not rented but held for personal use.

The roof is only part of the premises that is being rented. If this were a single-family home it would be a different matter.