I owe a condo with I rent out. My last tenant moved out in December 2006, and in 2007 I spent about $20k repairing the condo. Is there a dollar limit which can be deducted on Schedule e for these repairs?

Quote:

---

Originally Posted by Lindat

I owe a condo with I rent out. My last tenant moved out in December 2006, and in 2007 I spent about $20k repairing the condo. Is there a dollar limit which can be deducted on Schedule e for these repairs?

---

No dollar limit. I would check to ascertain amounts spent are actual repairs or may be expenditues that may have to be capitalized and therefore subject to depreciaiton. It should also be noted that under certain circumstance losses on rental property may be limited for tax purposes..

Delite pretty much says it all. If the repairs are in fact repairs, you should be able to deduct all of the costs.

However, if, in the course of doing the repair work, you actually remodeled or improved the condo (a complete remodeling of the kitchen or bathroom is a good exemple), then the remodeling is a capital improvement which must be epreciated.