Tax impact of building up reserves for capex/deferred maintenance

[Hector Sapinoso]

Hi BP,

I recently had some questions about estimating for capex (link below), and that got me thinking about taxes. If you add in a certain expense on your P&L for building up capex or deferred maintenance reserves, does that count as an expense that you can use on your tax returns? For example, if you receive monthly rent of $1000, and you estimate 6% for capex and deferred maintenance monthly ($60/month and $720/year), do you get to expense the $720 on your tax returns, even though you haven't actually spent the money? Also, do you just put that $720 in a savings account to wait for the day that you actually need it? Thanks in advance.

Estimates for capex

[Max T.]

I don't think you can call it an expense unless you actually spend it, documented with receipts. 

I do just put it in a savings account to wait for the day that I'll actually need it.