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Tax, SDIRAs & Cost Segregation

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Jeremy D.
  • Investor
  • Grand Rapids, MI
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Tenant destroyed an apartment- capitalize the repairs?

Jeremy D.
  • Investor
  • Grand Rapids, MI
Posted Nov 22 2013, 13:29

I finally completed the eviction of a tenant I inherited when i purchased a duplex. She trashed the apartment and the repairs are costing about $5k consisting of $2k carpet, $1.5k doors, drywall, etc, $1.5k paint.

I know i need to capitalize the carpet and depreciate it, but am I required to capitalize the new doors, drywall repairs, and painting the entire apartment as well? Or can all of this be expensed? They are significant repairs (capitalize), but they return the property to rentable status (expense)?

Thanks

Jeremy

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