Due to the new tangible property regulations, it is now more than ever important to properly categorize and separate your repairs and maintenance expenses to ensure they are properly treated on your tax return.
Amounts paid for routine maintenance on a unit of property is deemed not to improve that property and is currently deductible. Routine maintenance activities include: inspection, cleaning, testing of the property and the replacement of damaged and worn parts with comparable and commercially available replacement parts.
We recommend you should have the following expense categories for each rental property: cleaning and maintenance, for expenses such as cleaning services and pest control, landscape maintenance, for expenses such as lawn mowing, etc., and repairs and maintenance, for actual repairs and maintenance done to the property. If you have any questions or would like to discuss this further please contact our office.