Expenses, Repairs -vs- Improvements

[CL Ziegler]

Hi Everyone,

On my last three tax returns my CPA surprised me by prorating several of my HUGE expenses, citing that they were improvements so the full amount can't be claimed on one year's return. (he diviede them over ten or twelve, I forget) He based this on the amount of the expense; that is how he defined it as an improvement.

Does the amount define which category it goes in? Is that accurate? I feel like I got hammered in the past three years but now I'm rethinking, considering getting a second opinion, perhaps file a revised 1040.

Here is an example:

In two separate units I had the same problem: rotting bathroom floor and some sub-structure. In each case we gutted the bathroom and rebuilt it from the joists up, new sheet rock, floor, shower stall, small vanity, paint etc. If all I did was to restore it to its original usefulness, without adding anything new, then why would that be considered a 'property improvement'? I don't get it.

If you were me based on the info given here, how would you proceed?

Hope someone can offer some insight.

Thanks so much,