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Hi. Im Ben with IRStaxrelief.com. This past month or so, Ive received two phone calls. And I also got an email this morning from a client. All three of them own rental properties, and all three of them wanted to know what is the difference between a capitalized expense and a repair expense for a rental property? In particular, what can they do to ensure that the IRS will not try and reclassify it as a capitalized expense? Now, let me start out by saying theres nothing you can do to keep the IRS from challenging your deductions. They do it all the time. The IRS wants these expenses to be capitalized, and you want them to be classified as repairs. The reason why is, if its a repair, you get to write it off immediately. If its capitalized expenditure, you have to write that off over the class life of the asset. Now, a residential rental property is 27 and a half years. So thats quite a long time. A $27,000 deduction-- thats going to get you less than $1,000 a year. Thats not goin