Question

acy 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?
$725
$2,425
$6,630
$7,355

Answer 1

$725.

Explanation: The plastering ($250), paint ($175), and broken window repair ($300) are routine repairs (deductible). Replacing the water heater ($1,700) and the heating system ($4,930) are capital improvements and must be capitalized.