Deduct Cleaning and Repair Supplies

Tuesday, June 2, 2009
By Property Management Software

Cleaning and repair supplies are fully deductible, and materials are sometimes deductible too.

Supplies are used in maintenance or to complete repairs, and are usually “used up.”

Materials on the other hand are generally not “used up” and sometimes become a part of the property.

Materials used for improvements are usually depreciated, but materials used for repairs are considered supplies and can be deducted.

For example, say you changed the roof on your rental property. Nails and tar would be considered repair supplies, while roof shingles would be considered as repair materials. The supplies get deducted, and the materials are added to the basis and depreciated separately over 27.5 years.

However, if the roof replacement was a repair and not an improvement (replacing a leaky roof), the roof shingles would be considered repair supplies, and would be deducted in the year the expenses were incurred.

This blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies is brought to you by SimplifyEm Pay Rent Online and Property Management Software
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