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Updated about 6 years ago on . Most recent reply

User Stats

65
Posts
9
Votes
Nick Bleser
  • Investor
  • Northeast, WI
9
Votes |
65
Posts

New property, repairs and tax deductions?

Nick Bleser
  • Investor
  • Northeast, WI
Posted

Hello BP!

We bought an 8-unit property in 2018 and am working on the taxes for this property. As we've had turn over for each unit we've been painting, making repairs to things like cabinets and closets and also updating things like door handles and light fixtures along with other small expenses. 

I understand if we replace things like carpet or new cabinets it's considered a capital expenditure. We've turned over 4 units and most of our expenses have been very small but have added up to thousands of dollars in materials and labor. 

I'd also like to add we don't do any work ourselves. We have a handyman do all of our work so I'm trying to figure out how we deduct these expenses. Maintenance/repairs or Cap Ex?

Does it make a difference if we just bought the property and are doing repairs that "we" think are necessary like replacing a door handle that's not broke but obviously been the same handle from the 70's?

Even though we're spending a lot I don't think these repairs add significant value.

Any thoughts are appreciated.

Thanks!!

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