Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated about 8 years ago,
Determining CapEx or Repair for Rental
I've been preparing for tax season and when looking over my books, I noticed that I had a $7000.00 bill from my plumber. When I checked my maintenance log, I found that a section of the main sewer line was replaced because the bottom had rusted out over the years and was causing blockage. This job required excavation underneath the house and in the front yard. Since only a section of the sewer line was replaced, is this considered a repair, or would it be classified as CapEx? I read the post below where @Brandon Hall helped to clarify the differences between the two, but I'm still not sure. Any CPA's have an opinion on this?