It’s interesting that a roof replacement is a capital cost but a roof repair is not.
The main concept is increasing the life of the building beyond what it was before. A repair brings it to where it should be, a replacement takes it further.
So if you replaced ALL your windows it would be capital, if you repair one or two it’s a normal expense.
This does mean that you may elect to have all your windows replaced (if it’s about time anyway) especially if your appreciation is past the capital gains exclusion.
Or another way to look at it - if it was a rental the cost to repair the window would be an expense against income. The cost to replace all windows would be depreciated.
The main concept is increasing the life of the building beyond what it was before. A repair brings it to where it should be, a replacement takes it further.
So if you replaced ALL your windows it would be capital, if you repair one or two it’s a normal expense.
This does mean that you may elect to have all your windows replaced (if it’s about time anyway) especially if your appreciation is past the capital gains exclusion.
Or another way to look at it - if it was a rental the cost to repair the window would be an expense against income. The cost to replace all windows would be depreciated.
Statistics: Posted by bombcar — Tue Jun 25, 2024 7:21 am — Replies 3 — Views 438