Show Notes
Should you expense a rental property cost immediately or capitalize and depreciate it over time?
It's one of the most misunderstood areas of real estate investing and getting it wrong can cost you thousands in missed deductions or IRS headaches.
In this episode, Thomas Castelli and Nate Sosa break down the decision framework every real estate investor needs to understand when dealing with repairs, renovations, improvements, appliances, HVAC systems, roofs, and other property expenses.
You'll learn:
- When an expense can be deducted immediately - How the De Minimis Safe Harbor works - The difference between repairs and capital improvements - When the BAR Test applies (Betterment, Adaptation, Restoration) - How cost segregation impacts your deductions - Bonus depreciation vs. Section 179 and when each makes sense - Common tax myths that trip up landlords and short-term rental owners
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