New investor here!We had to replace our refrigerator in our rental, due to the old one breaking. Is this a Capital expenditure or an operating expense?I'm also wondering what the advantages are of classifying one as a...
Hello hello everyone, at this current time I am researching about capital expenditures. I would definitely like to know people's take on keeping the cost down.
I bought a property that has a house and a warehouse on the land. I lease the warehouse to a business for $3k/mo and lease the house to a private resident for $2.7k/mo. Property is in unincorporated county land with n...
So say you've been depreciating a property for 10 years. Year 11 rolls around and you completely replace the roof. Does that just increase the remaining depreciable balance (basis) for 17.5 years? Or do you deprec...
I've posted about this before but I don't feel that a reasonable and sufficient conclusion was ever reached, at least not on my part.I have not yet done any deals. I currently work 8-5, have about 30k in the bank, and...
How is the capex reserve fund handled tax-wise in an LLC (or S-Corp)?Over the year, a portion of the rental proceeds are siphoned off into an account for future upgrades (roof, furnace, rehab, etc). Does that count a...
Hello All, Ever since I had realized that the 10% rule for CapEx estimation is not always a good estimate, I've done my own estimations as to how much money should be allocated for CapEx in the Los Angeles metropo...
I estimated 5% property management, 10% for maintenance & 10% for capital expenditure in Montreal, Quebec, Canada area; and that would makes most deals a bad deal. I'm wondering what percentage of rents do you all...
Hi all!Purchased our first rental home this year using a conventional loan. When it comes to (Taxes) Capital Expenditures - 1) Is travel to remodel the house (had to fly and rent a car) considered part of CapEx?2) Are...
.....so how much or what % of your gross rent roll should be put away for capital expenditures such as a new roof, driveway, leaks or whatever large repairs that need to be made to your multifamily investment properti...