Repairs keep a property in working order. Improvements add value, extend its life or adapt it to a new use, and are usually depreciated over time. Your tax preparer decides which is which.
Log each improvement
- The property and date placed in service.
- What was done: roof, AC, water heater, flooring, addition.
- Cost, with the invoice.
- The contractor and any warranty.
Keep it for years
Improvement records matter for depreciation and when the property is sold.
Our improvement log keeps the list and totals by property.
General information, not legal, tax or financial advice.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.