Rental upgrades 1 year write off?

[Kenneth Ginder]

We're updating the fencing, replacing a dated leaky porch entry, taking out a dead tree this year (2023). Can we business expense all of these projects in the same year. Or do these larger upgrades/updates need to be apart of a cost segergation study? We also have more projects that we plan to hire out in the next few years. ( replaces old wooden single pane windows, replace collapsing porch and updated very old plumbing). Can we write off each year we knock out a project. Or should we do a look back cost segergation study when all of our projects are completed?

Rentals in WI

Residential property valued at 175k (appraised in 2022)

[Corby Goade]

There's so much bad info out there about cost segs or write offs. This isn't a method that is for everyone in every situation, I'd say 90% of the time it's probably not a good strategy in a situation that the investor is pushing for it. 

Unless you have the income to support it, accelerating depreciation is just throwing future profits in the trash. 

Some of the projects you mentioned above are maintenance, which doesn't get depreciated- I'd sit down with your CPA and break it down together and come up with a strategy. 

Best of luck!