Are property repairs (say e.g. to foundation tax deductible?)

not sure what you are asking. Property repairs will be expense which will deduct from your income. Your NOI is what being submitted on the tax returns.

Originally posted by @Mauricio A. :

Are property repairs (say e.g. to foundation tax deductible?)

 For a primary residence no.

For a rental property, they will typically have to be capitalized and depreciated over time due to the resulting improvement in the property. As a result of a catastrophe, they may actually be considered a repair depending upon what was done and what the cost of said work was. 

@Steven Hamilton II

What’s would a 7-9k foundation repair to prevent ground water damage qualify as? This is for an investment property.

Thanks!

That sounds like it needs to be capitalized 

@Mauricio A.

I'm trying to figure out why people are saying this should be capitalized.

Generally, placing something back into working condition from an event causing damage would be listed as a repair/expense. Something capitalized would be a large capital expenditure extending the life of the home, or creating more value.

Disclaimer, I'm not a tax professional, and I personally use a CPA because I definitely don't know it all.

Originally posted by @Justin R. :

@Mauricio A.

I'm trying to figure out why people are saying this should be capitalized.

Generally, placing something back into working condition from an event causing damage would be listed as a repair/expense. Something capitalized would be a large capital expenditure extending the life of the home, or creating more value.

Why? Because of these highly complex IRS rules called "Tangible Property Regulations"

You're applying logic, and unfortunately the tax law is not built on logic.

@Michael Plaks thanks for sharing the link!

Originally posted by @Mauricio A. :

Are property repairs (say e.g. to foundation tax deductible?)

 The safest way is of course capitalization. However, there are so many other things that can be evaluated if you need a different treatment. 

There are numerous Tax Courts that have determined that if the expenditure merely restores the property to the state it was in before the repair was required and does not make the property more valuable, more useful, or longer-lived, it is usually considered a deductible repair. 

Your one sentence question is not enough to give you definitive answers, so talking to your profession with more detail will help you get desired result, if applicable. 

Can someone explain what does being "capitalized" mean in lay terms-am not a CPA :) 

Also, is there any difference with respect to being able to deduce the repairs if the payment for the repair is made in financed portions over several years vs one lump sump?

Thanks!

@Mauricio A.

Capitalized means that it is not all expensed in the current year but you have to depreciate it over its useful life based on IRS guidelines.