I realize that any improvements to rental properties are not deductible, just repairs. However, even though the new siding is an improvement to the property it is also repairing the old siding to prevent any further water damage to interior of the home.
2007-03-15 03:49:18 · 12 answers · asked by paulus550 1 in Business & Finance ➔ Taxes ➔ United States
I am assuming that you own the rental and are renting it out.
Improvements are deductible, not only repairs. The difference is that you need to capitalize improvements and then depreciate them. The depreciation is a deduction for the rental property.
2007-03-15 03:56:10 · answer #1 · answered by D D 2 · 1⤊ 0⤋
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2016-07-19 11:05:52 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I believe that there were a couple of court cases in the past couple of years that address situations like this.
The court ruled that if the improvement/repair in question just returned the property to its original condition and did not actually improve the property, it can be deducted in the year paid as a repair and need not be depreciated over the long term.
2007-03-15 04:18:54 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
Rental property is a business if you are actively involved. All legitimate costs of operating the business are deductible. (f): There is no sliding scale. (d): If the travel is for the purpose of managing the property, it can qualify subject to limitations. All the other items you list are deductible. If you are not actively involved in managing the property, 'passive activity loss' rules apply. This does not limit the types of expenses that are deductible. They do limit deducting any net loss against other income.
2016-03-28 23:53:08 · answer #4 · answered by ? 4 · 0⤊ 0⤋
If you fixed the leak by replacing a failed section of siding, that would be a deductible repair. A full siding job is not a repair for tax purposes and must be depreciated over the life of the siding.
2007-03-15 03:56:21 · answer #5 · answered by Bostonian In MO 7 · 1⤊ 0⤋
I doubt seriously this is a tax deduction. If you want to know for sure call the IRS and they will tell you. If you don't and you use it as a deduction it could raise a red flag and you will be audited. If you don't own the property then you have no right at all to claim this deduction under any circumstances.
Good Luck.
2007-03-15 04:06:41 · answer #6 · answered by devilgal031948 4 · 0⤊ 1⤋
It depends on the amount of work done. If you had siding replaced on all sides of the house, I'd say it is an improvement. If you had the bad siding replaced on part of the house, I'd say it is a repair.
2007-03-15 03:57:54 · answer #7 · answered by ninasgramma 7 · 1⤊ 0⤋
Any repairs, and or upkeep is tax deductable on your Fed. returns. Even the IRS says so.
2007-03-15 03:56:04 · answer #8 · answered by celticwarrior7758 4 · 1⤊ 1⤋
I would deduct it. You believe the same.
2007-03-15 03:53:41 · answer #9 · answered by Anonymous · 0⤊ 1⤋
I say its maintenance, and should be deductible
2007-03-15 04:27:39 · answer #10 · answered by Anonymous · 0⤊ 0⤋