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WHEN CONSIDERING what to do about a broken furnace, a leaky roof and other maintenance headaches, rental property owners should bear in mind that repairs are accorded more favorable tax treatment than improvements.
Repairs are deductible in the year they are made, while improvements must be depreciated over a period of years.
Thus, from a tax perspective, it`s generally better to repair a furnace than buy a new one. Similarly, patching a leaky roof has the advantage of being immediately deductible, while the cost of installing a new roof generally has to be depreciated.
