Tax write off question

5 Replies

Can you write off or expense things purchased for upkeep of a rental unit come tax time? Things like paint, power tools like table saws and drills as well as items like water heaters, and bath tubs? I would be paying for the items under one of my bank accounts that I only use for this property.

Thanks

Manuel,

Yes you can deduct items used to improve and repair your rental property. Consult with your accountant. 

Google IRS schedule E for common tax deductions. 

Good luck and let me know if you have any questions. 

Originally posted by @Manuel Encarnacion :

Can you write off or expense things purchased for upkeep of a rental unit come tax time? Things like paint, power tools like table saws and drills as well as items like water heaters, and bath tubs? I would be paying for the items under one of my bank accounts that I only use for this property.

Thanks

 Mostly yes, but sometimes you have to capitalize cost and depreciate the cost depending if you can’t deduct the expenses as repairs or under safe harbor because it’s an improvement. 

@Manuel Encarnacion

Items you pay for to upkeep a rental are normally a tax deduction or capitalized.
Based on the items you described - Paint, powertools and table saws and drills can be currently expensed or taken bonus depreciation.
Items like water heaters and bath tubs may need to be capitalized - Depending on the amount, these items can be currently expensed if proper elections are made.

It also depends on if items purchased are 100% business with no personal use.