How to tell if a rental expense is a repair or improvement

Name: How to tell if a rental expense is a repair or improvement
Duration: 89 s
Description: If it wears out in five or six years it's a repair; if it lasts the life of the property, like a roof, you must depreciate it.

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Will that rental property fix hold up for five years or thirty? The answer decides whether you can expense it now or have to depreciate it over time. TJ walks through the logic he uses for things like roofs versus landscaping—and why getting it wrong can mean penalties and interest if the IRS ever takes a closer look.

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