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Level 2
posted Oct 30, 2019 4:50:55 AM

Should I report, but not claim capital expenses on rental property?

We have made many repairs to a rental property the past year.  Some of the repairs are replacements so we're claiming them as current expenses.  Other are more like improvements so we are claiming them as capital expenses.

The current expenses have reduced our rental income to below 0.  I know that we cannot claim the capital expenses to increase the current expenses, but is there any benefit to reporting them this year?  Could we claim them in following years?

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1 Best answer
New Member
Oct 30, 2019 4:50:56 AM

Transactions should be reported in the year they occur. You would then carry these amounts forward to subsequent years to use then as needed. 

1 Replies
New Member
Oct 30, 2019 4:50:56 AM

Transactions should be reported in the year they occur. You would then carry these amounts forward to subsequent years to use then as needed.