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Are costs of installing insulation deductible of rental tax return?

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  • Are costs of installing insulation deductible of rental tax return?

    I wondered if this is treated as a capital gain situation as it is an improvement or can it be written off as an expense?
    Also where say a ranch slider is replaced with one having double glazing . Similar situation to the above. How are they treated tax wise?

  • #2
    I understand that if there is existing insulation and you replace it, the new insulation is tax deductible, however if there is no existing insulation then you capitalise the new insulation. For the ranch slider, replacing with double glazed is an improvement so not tax deductible, however if existing ranch slilder is broken and you need to replace it, probably deductible as you are simply replacing with current standard. But best to check with your accountant.

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    • #3
      Under current law everything classified as improvement and not repair will be capitalized and with zero depreciation - landlords don’t get paid.

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