Asked by Romya Samal on May 31, 2024
Verified
Capital improvements on rental properties may be deducted in the current year.
Capital Improvements
Permanent structural changes or restorations to a property that enhance its value, prolong its useful life, or adapt it to new uses, with potential tax impacts.
- Understand how capital improvements and other expenses paid by tenants are treated for tax purposes.
Verified Answer
GE
Georgio El-khassMay 31, 2024
Final Answer :
False
Explanation :
Capital improvements on rental properties are usually depreciated over a period of several years, rather than being deducted in the current year.
Learning Objectives
- Understand how capital improvements and other expenses paid by tenants are treated for tax purposes.
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