Replacing rotten windows with new ones on a rental property considered an improvement or repair on tax return?
It could be a vague area. If you replaced one or two units out of several, you might consider that a 'repair'. However, if you replaced all of the windows in the property, you should consider that an improvement and amortize your cost deductions as indicated in IRS guidelines.
by acermill - 18 hours ago
Speaking as a rental property owner, I can assure you ,whatever you put into your unit, as a repair,or an new addition.. Meaning, if you replace a driveway, deduct it.. new siding,windows,gutters and downspouts,even a washer and dryer, if it is considered part of the unit.. Now usually, you don't get to take the entire amount off in one year, its usually 'Amortized' over a period of years..Just as you depreciate your property every year, this is put into the mix.. This is how my tax accountant handles all of my rental property.. I had a $600.00 sewer clean out on a unit this year and that will be considered an expense.. Also deductible.. Hope this helps.. You can also check with the IRS help hot line to verify this to be sure.. The number is I-800-829-1040.. They put you on hold for quite a bit and transfer you a couple of times to get the right person, but it will be worth your time..Good Luck!! SOLOMON
by solomon - 18 hours ago
Well, the IRS says: Repairs versus improvements: A repair keeps your home in an ordinary, efficient operating condition. It does not add to the value of your home or prolong its life. Repairs include repainting your home inside or outside, fixing your gutters or floors, fixing leaks or plastering, and replacing broken window panes. You cannot deduct repair costs and generally cannot add them to the basis of your home. However, repairs that are done as part of an extensive remodeling or restoration of your home are considered improvements. You add them to the basis of your home.
by Bob W - 18 hours ago
It would be an improvement, as you are improving or upgrading the exisitng. If the window glass was broken or you replaced one window due to damage of some sort it would be a repair. But since you replaced all the windows, right? it would be and improvement.
by Kim B - 18 hours ago
how long do you expect the new windows to last? is their installed cost significant [in relation to, say, a month's rent or your annual profit]?? *** seems like a capital improvement to me. please remember to take the first year's depreciation on your Schedule E
by Spock (rhp) - 18 hours ago
replacement is a long term improvement and must be depreciated as such. If the window pane of glass was broken thats a repair and can be written off in year it was repaired. See the MACRS recovery period for rental property. Publication 527 IRS code I believe MACRS= modified accelerated cost recovery system If this doesn't help you call a cpa to get clarification on the matter. Lets start a tax rebellion!
by dave c - 18 hours ago
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