Bummed out over Genral Plan of Improvement Rule
I just closed on my first SFR today! I've been feeling good all day until I read more about the difference between repairs and improvements. More specifically, I'm bummed out over the General Plan of Imporvement rule. Here's why:
I purchased a forclosure. It has one huge problem: the foundation needs some major work; about 10K to be exact. I was confident this would be a repair, as the solution will be to restore it back to its original state. Figuring I'd be able to deduct it all in one year as a repair, I thought 10K wasn't too bad since a little over 3K should end back up in my pocket. But then I got to chapter 4 in my book, Every Landlord's Tax Deduction Guide (great book by the way), and read the crap about too many repairs in a short time can constitue a general plan of imporvment, therby classifying your repairs as improvements.
Besides the foundation, I need to make other "repairs" such as, re-glazing the bathtub, re-finishing the wood floors, and completely repainting the interior. These are all fairly large expenses and really need to be done before I rent it out. Of course I have other misc. things that would be classified as an improvement at anytime. That will probably be around 5K for those improvements.
Thank you for hearing my rant. Now if I may, I'd like to ask for advice. Do you guys have any ideas on how to keep these things designated as "repairs" w/o spreading the work out over several years. Is the general plan of improvement subjective enough that I can take some liberties and not worry about it?
I appreciate the help!