Can You Deduct It Now… or Do You Have to Depreciate It? (Rental Property Tax Talk)

[William Thompson]

Every tax season, this question comes up over and over:

“Can I write this off now, or do I have to depreciate it?”

Here’s the quick rule of thumb I share with clients:

If it’s a repair (fixing what’s broken or keeping things running), you can usually deduct it right now.

If it’s an improvement (something that adds value or extends the property’s life), you’ll have to depreciate it over time.

So… patching a roof = deductible repair.

Replacing the entire roof = depreciable improvement.

And with the 2025 tax rules, certain property components (like appliances or flooring) might even qualify for 100% bonus depreciation if you do a cost segregation study.

Curious how everyone here handles it — do you separate repairs vs. improvements yourself, or just hand it all over to your CPA at tax time?