"What's the difference between "Maintenance" versus "Cap-Ex?"

[Drew Wiard]

Hey kids,

Sorry for the what I'm sure is a super lame question, but I've looked around the site, but have not found the answer to:  

"What's the difference between "Maintenance" versus "Cap-Ex?"

Any quick answers or links to other threads that explain this?  Thanks!

[Sylvia B.]

Yes, there are tax implications and IRS rules. I HIGHLY recommend consulting an accountant about your specific circumstances.

I expense anything that involves less than 1/3 of a system. For instance, we had a major electrical repair in one of our rentals this year that cost $2500. We will be able to expense the full amount because the electrician certified that replacing the entire electrical system would cost more than $7500.

I also expense anything that costs $500 or less.