|
Repairs are costs that keep property in good condition. They are deductible as current expenses. Examples of repairs are repainting, replacing broken windows, fixing damaged carpet, preventative maintenance, fixing gutters, plastering, and sealing leaks.
According to tax law when the repairs result in an increased value or useful life for the property, or adapt the property to a different use, they are classified as capital improvements and are not deductible as current expenses. These improvements go on your balance sheet as fixed assets and are expensed over time. Examples of capital improvements are remodeling, restoration, replacing a gravel driveway with concrete, or constructing an addition.
|
