Let me know in the comments if I’m being a bit too nit-picky. I actually have different definitions of the terms repair and capital improvement than the ones used in this particular post. 🏠 When we’re talking about your rental real estate, a repair, from my perspective, is when you take something that’s in that unit or property you own and bring that thing back to a new or good condition, but it’s still the same thing. 🔧 A capital improvement is the replacement of the thing or the addition of something new to the property or the modification of something already there. Like adding a new appliance, putting in an addition to the property, or renovating and restructuring the infrastructure of a room... a new wall as an example. 📑 The concept is different on purpose because the tax code treats those things in different ways. 💵 Repairs are treated as an expense in the year the cost is incurred. 🏗️ Capital improvements must be depreciated over their useful life. ✨ That depreciat...