Capital Improvements vs Repairs for Landlords

Repairs are often deductible now; capital improvements depreciate over years. Landlords don't decide the category — CPAs do — but you must document what was done, when, and how much.

General rule of thumb

Repairs restore function (fix a leak, replace broken window). Improvements add value or extend life (new roof, kitchen remodel). Gray areas abound — document everything.

What to log

Date, property, vendor, description, amount, and invoice/receipt. Category tag in your ledger helps your CPA sort faster.

Don't guess at tax time

Log expenses when paid with clear descriptions. Let your CPA classify — you provide the paper trail.

RentLedger expense tracking

Per-property expense log with categories aligned to Schedule E line items. Export year-end summaries on Pro.

Replace your spreadsheet tab

Track expenses by property — free trial.