Capital Expenditure vs Repairs and Maintenance

Managing the checkbook is one of the most difficult and taxing (pun intended) parts of being a rental property owner. Knowing the difference between Capital Expenditure and repairs and maintenance is essential to mastering your taxes as well as your bookkeeping for your Atlanta rental property.

Money spent on repairs and maintenance is spent in order to restore or maintain the property, so it is not considered a new asset and cannot be capitalized. Instead, repairs and maintenance costs are simply considered expenses.

1 thought on “Capital Expenditure vs Repairs and Maintenance

Leave a Reply

Your email address will not be published. Required fields are marked *