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Updated about 9 years ago,
Capex or Opex? Maximizing my deductions
Hello BP!
I know I should seek the advice of a competent CPA or Tax attorney, but I wanted to get some opinions of others prior. I understand you aren't giving tax or legal advice, so the disclaimer is out there.
I have some expenses that I need to take care of on some rental properties and wanted to see your thoughts if these fall under the categories of repairs (thus deductible) or if it was a capital improvement.
A/C: I "repaired" the compressor earlier this year when it went out, total cost was $2,500 would this be an improvement or a repair?
Treework: I need to have some trees trimmed, my thoughts on this would be opex and a deduction
New carpet: This one I know is a capital improvement and must be amortized.
New Pool pump: I'm assuming capex also.
Thanks everyone!