Expense or Capital Improvement?

[Michael Ruvido]

Hi All -

I have what I hope is a quick question for the tax professionals out there. The master bath in one of our rentals only has a jacuzzi tub, no shower head at all (weird, I know!). We're going to tear out the drywall around the jacuzzi, replace it with cement board, add a shower head, and tile the surround. The jacuzzi itself isn't being touched and the only plumbing is adding the water line up to the new shower head. Total cost is $3,200.

I know the De Minimus safe harbor rule allows you to deduct anything under $2,500 and that anything over this amount, if considered a capital improvement, would need to be capitalized and depreciated over a certain period of time (the life expectancy of the improvement). In your opinion, is doing the work I mention above a capital improvement or an expense? Why do you think it's one or the other? Any info you can provide would be appreciated!

Thanks!