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Repair or capital improvement? The answer isn’t obvious

April 1, 2026

“Repair or Capital Improvement?
The Answer isn’t Obvious”

To get my complete article
with all the details…

The sliding glass door failed.

Water damage. Collapsed frame. The whole unit had to go.

Total cost to replace it: $12,000.

Same brand. Same size. Same quality. No upgrade.

So is it a repair you can deduct this year? Or a capital improvement you depreciate over 39 years?

The answer depends on how you navigate the IRS “BAR tests”—and most building owners don’t realize they have options.

In this case, the strongest technical position may surprise you. But if you prefer a conservative approach, there’s still a way to capture a meaningful deduction now.

CLICK HERE to read my completely new article titled:

“$12,000 Door Replacement:
Repair or 39-Year Asset?”

Filed Under: Depreciation, Filing tips, Rental Properties, Tax Planning

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