Capital Expenditures versus Repairs:
A business repair generally does not prolong the life or add value to the property, and it typically maintains the property in its normal operating state. For these reasons it is deductible as a business expense.
The expense is not deductible as a business expense, but instead the cost is capitalized and depreciated over the property's useful life.
Capital Expenditures include:
- Adds value to the property
- Substantially prolongs the useful life of the property
- General plans of improving, altering or renovating the property
Business Use Versus Personal Use:
- If business use of the listed asset is greater than 50%, then the owner may use the statutory percentages for depreciation.
- If business use of the listed asset is equal or less than 50%, then the owner must use straight line depreciation.
Section 179 Deduction
Financial AdvisorHow the depreciation tax rule can assist real estate investors.
InvestingIt's a bit tricky, but a valuable tool to make your investment pay off.
InvestingFind out how you can build wealth and reduce your taxes.
TaxesStep-by-step, how to fill out the depreciation and amortization form for your business tax return.
TaxesIf your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.
InvestingAnyone involved in a real transaction can benefit from gaining a basic understanding of the different methods of real estate valuation.
Small BusinessCapital expenditures and revenue expenses have significant differences. Here's the difference between the two.
InvestingAn operating expense ratio describes a property’s operating expense compared to the income it generates.
TaxesBeing a landlord can be taxing, especially when you want to sell. Find out how to reduce your burden.