Class Group: Capital Expenses

CapEx on rental property (also called Capital Expenses) are expenses to replace parts of the property that wear out over time. What’s the difference between CapEx and maintenance? From a tax perspective, capex of less than the “safe harbor” limit of $2,500 per invoice or item can be written off as maintenance on the property in the year they were taken. Some expenses over the $2,500 safe harbor amount will need to be capitalized over the lifespan of the item. Talk to your CPA or read the Internal Revenue Code for more detailed information on the tax treatment of capex. … Read more