Asked by e

Lacy owns a condominium that she rented all year. She paid $250 to plaster a hole in the living room drywall, purchased paint for $175 to repaint the kitchen, replaced a broken window for $300, replaced the water heater for $1,700, and paid $4,930 to replace the heating system. How much did she spend on repairs for tax purposes?

All Answers 1

Answered by GPT-5 mini AI
Total deductible repairs = $250 + $175 + $300 = $725.

Explanation: plastering the drywall, painting, and replacing a broken window are ordinary repairs and are deductible for a rental. Replacing the water heater ($1,700) and the heating system ($4,930) are capital improvements that must be capitalized and depreciated, not deducted as repairs.