Write Offs for tax season

[Travis Turnbull]

Hi Everybody,

Quick question here about taxes. If you put all of your expenses for minor renovations for your rental on a Home Depot CC would it be appropriate to just deduct your actual payments for the year that you made on it? Or do you need to plug in every single charge and what is was for. Also can you deduct CC interest for your renovations? Thank you.

-Travis

[Michael Plaks]

Originally posted by @Travis Turnbull:

Quick question here about taxes. If you put all of your expenses for minor renovations for your rental on a Home Depot CC would it be appropriate to just deduct your actual payments for the year that you made on it? Or do you need to plug in every single charge and what is was for. Also can you deduct CC interest for your renovations? Thank you.

Your question may have been misunderstood by previous responders. I believe you're asking about deducting payments you made to the HD credit card.

If so - then these payments are irrelevant for taxes. Your expense counts in full when it is charged to the HD card. When you make payments on the card balance and how much - does not matter for taxes. 

Interest on the HD card is an additional deduction, assuming all the charges are for your investment properties, and none for your personal home.

How, whether you can deduct all the repairs is a completely different question, because not everything that we call repairs is considered repairs for tax purposes. For example, replacing a roof is not repairs and is treated differently: slowly depreciated in small chunks over many years.