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previous page Previous Page: Publication 946 - How to Depreciate Property - What Is the Basis of Your Depreciable Property?
next page Next Page: Publication 946 - How to Depreciate Property - Do You Have To File Form 4562?
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taxmap/pubs/p946-006.htm#en_us_publink1000107378

How Do You Treat Repairs and Improvements?(p13)


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previous topic occurrence How Do You Treat Repairs and Improvements? next topic occurrence

If you improve depreciable property, you must treat the improvement as separate depreciable property. Improvement means an addition to or partial replacement of property that adds to its value, appreciably lengthens the time you can use it, or adapts it to a different use.
You generally deduct the cost of repairing business property in the same way as any other business expense. However, if a repair or replacement increases the value of your property, makes it more useful, or lengthens its life, you must treat it as an improvement and depreciate it.
taxmap/pubs/p946-006.htm#en_us_publink1000107379

Example.(p13)

You repair a small section on one corner of the roof of a rental house. You deduct the cost of the repair as a rental expense. However, if you completely replace the roof, the new roof is an improvement because it increases the value and lengthens the life of the property. You depreciate the cost of the new roof.
taxmap/pubs/p946-006.htm#en_us_publink1000107380

Improvements to rented property.(p13)


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You can depreciate permanent improvements you make to business property you rent from someone else.
previous pagePrevious Page: Publication 946 - How to Depreciate Property - What Is the Basis of Your Depreciable Property?
next pageNext Page: Publication 946 - How to Depreciate Property - Do You Have To File Form 4562?
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication