Rental property improvements, capitalization
I get many questions regarding rental property improvements and depreciation. Typically, any improvement or modification that adds value and extends the life of a property will need to be depreciated over a period of several years. For residential property, this period is 27.5 years, and 39 years for commercial property.
Some improvements can be depreciated over a much shorter period of time. When reporting expenses for your rentals, remember to add your mileage and out-of-pocked expenses for advertising, lawn care, and so forth.
