TaxGuyBill
Level 15
01-25-2025
04:14 PM
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@lbones wrote:
with renovations in amount of $50K,
can the $50K be completely expensed.
"Renovation" seems to indicate a "betterment" or a "restoration", which is depreciated when the improvement is placed in service (short term rental is generally depreciated over 39 years, unless it qualifies for 15 year Qualified Improvement Property), not "expensed" (not deducted in one year).
https://www.thetaxadviser.com/issues/2021/oct/capitalized-improvements-vs-deductible-repairs.html