Turnover/"Make-ready" Maintenance, is it consider CAPEX?

[Paul Smythe]

I've got what seems like a mostly accounting/tax question for the BP community. When doing "make-ready" work on a unit between renters, is it reasonable/allowed to just lump it all in as a capital expenditure, or does it typically count as regular maintenance (or is it somewhere in the middle depending on the work performed)?

To me this question also extends to how it should look from a P&L perspective. Is it a capital expenditure or a regular maintenance item?

Thoughts?

[Bobby Lee]

Here's a general rule of thumb:

If it is to bring it back to good condition, it's a repair & maintenance expense.

If it is to improve, upgrade, or somehow make it better than the original, then it's a capital expenditure.

I suspect most turnover expenses are repairs.