When you own a multifamily investment property, it is prudent to fix things when they break or fall into disrepair. You may also wish to have your property’s mechanical systems and related infrastructure repaired, maintained or improved to save money, make your property more desirable, or take advantage of tax incentives.
When you make repairs and improvements to your investment property, how you classify them helps determine how you deduct the related expenses on your taxes. When it comes to repairs, you may deduct the full cost of any repairs made that year when you file that year’s taxes. Things work a bit differently when it comes to making capital improvements. Rather than deduct the full cost of the improvements all at once, capital improvements are generally depreciated over time. Before making plumbing improvements to your multifamily property, here’s what to know about your options.
