Steven Fishman wrote a great article about the pending changes for small property investors. We have all been waiting a long time for this, it simplifies how the IRS treats repairs and the improvements you make to your property.
Currently small and large investors have to treat improvements differently than a repairs. You fix a HVAC system, its a repair and you deduct the full amount, If you replace the HVAC system it's an improvement which needs to be depreciated.
In 20014 you should be looking at your portfolio and consider making some improvements which can benefit the VALUE of the property, IMPROVE maintenance and be deducted from income.
We recommend you contact your Tax professional for advice and to review options for previous years by filing an amended return.
Important Links
http://www.inman.com/2013/09/30/good-news-for-owners-of-smaller-residential-rental-properties/#!
About The Author
Eric Guggenheimer - SFR, ARM ® » Principal Broker, Certified Property Manager, IREM, ARM, NARPM, NVAR, NAR, VAR
