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Ben from IRStaxrelief.com received inquiries from clients regarding the difference between capitalized expenses and repair expenses for rental properties. The IRS often challenges deductions, preferring expenses to be capitalized. Repairs allow for immediate write-offs, while capitalized expenses are spread out over the asset's class life, which is 27.5 years for residential rental properties. This results in a smaller annual deduction, emphasizing the importance of correctly categorizing expenses to maximize tax benefits.
