Window Repair - Capital Improvement vs Repair

[Maureen Campbell]

Hellow BP'ers,

One of my units has a room that has windows that will not close all of the way that we need to replace. I am hoping to have them replaced before it gets too cold, but am wondering whether I would count it as a repair or a capital improvement. I am not replacing all of the windows in the unit, just the one room. The tenant still lives there and will continue to live there after the replacement. I am in NJ and will be charged tax on the total cost of the project if I do not sign an ST-8 declaring it a capital improvement, but I would imagine that the deduction this year is more valuable than a long-term depreciation even if I do have to pay tax on it this year.

We are also having a storm door replaced on another unit. That one had a storm door that blew open and was seriously damaged during a wind storm. Again, I don't know that this is really a capital improvement, since it is just bringing the property back to the condition it was in before the wind storm.

Just listened to the recent podcast with @Brandon Hall so taxes were on my mind.

Thanks,

Maureen