I had put in a new flooring in my rental condo in May. This week I had put in a new roof at the same condo. Flooring cost was $3000.

Roof cost was $4900.

I am looking for the advise on how to handle these expenses at tax time.

During Tax time, Can I claim new roof and flooring as a repair expense or do I need to depreciate the flooring and roof?

Thank your for your help.

NO! Split the invoices into $2500 or less using cost segregation techniques and expense it all ASAP using de minimus safe harbor rules.

Example A:

Roof - $4900 = you have to depreciate it most likely.

Example B:

Tear off old shingles (labor and disposal) $1,000

Deck repair on existing roof: $500

Tar paper and nail - supplies: $500

X-squares architectural shingles $1,500

Installation labor $1,000

Labor & supplies warranty $400

How many of those individual line items require depreciation? MAYBE the shingles, decking, and tar paper. Certainly NOT the disposal & tear off labor that accounts for almost 20% of the job cost. And I would argue that the nails could be expensed. Probably the warranty too.

I would have gotten a detailed invoice showing the material cost plus sales tax and the labor.

Labor you can write off this year. The sales tax you can also deduct this year. The material like the flooring, shingles and under lay should be depreciated. The flooring, somewhere between 5 to 10 years and the roofing around 20 years instead of the required 27.5 years since the roof will never last that long.

When you start thinking LONG TERM on your projects you will become a natural at dispersing expenses over years. Try prepurchase of supplies also.

When we were waiting on closing properties , years ago, we would buy supplies and bill to other propertys before we closed on the property we actually needed the supplies on.

Fred,