Repairs due to Vandalism can be Expensed Immediately

[Tax Tip]

If rental property is damaged by vandalism, the cost of repairing the
property to its previous condition is immediately deductible instead
of being capitalized and depreciated.

For example, say you replaced an entire window frame on your property.
Normally the cost would get added back to the basis and depreciated
because windows are a component of the building structure (depreciated
over 27.5 years).

However, since the improvement is the result of vandalism, it is
treated like a repair, and the costs are deducted in the year the
expenses are incurred.

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