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Updated 5 months ago,
Supplies vs Assets vs Repairs vs Maintenance
I've asked a similar question before but need further direction. In years past, I gave descriptions of expenses to my accountant and they figured it out for me. This past year, they charged me for the categorization and it wasn't insignificant charging. I've been adding more properties (which is a good thing) so they probably got to a point where they had to charge me. So, I'd like to correctly categorize things for 2024.
Anyway...supplies vs assets. As much as I read about it, the guidance seems so wishy-washy to me. Below are just a few examples with my guess of category. Can someone correct me if I'm out of line? If you don't do work yourself, is labor to install categorized differently? Does it really matter monetarily which category is used? If it can be categorized in multiple categories, would one benefit me more than others tax-wise? Thanks in advance.
Carpet - Asset
Vinyl Flooring - Asset?
New Toilet - Asset??
New vanity - Asset??
New Tub - Asset??
Plumber Labor for remodel - Maintenance?
Washer/Dryer/Stove/Refrigerator - Asset
New Baseboards/trim - Asset?
Doors - Asset?
Furnace/AC - Asset?
Paint - Supplies
Light Fixtures - Assets?
Fencing - Asset?
Lumber for deck remodel - Asset?
Roof replacement - maintenance?