Quote:
Originally Posted by LeeH
I've done small business accounting for years, but there seems to be various opinions on what's expensable and what's a capital expense when it comes to rental real estate.
So, I bought a house to rent. How would you categorize:
Asbestos testing and abatement
Trash removal... stuff left by previous owners
Trailer rental and dump fees for old carpet
Trailer rental to pick up new bathroom cabinet
Utilities during rehab
Or, is everything I do now part of the renovation, thus capex?
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Looks like OPEX to me. The only possible exception being the trailer rental to pick up the new bathroom cabinet. Though, some would argue that the trailer rental = OPEX and the cabinet itself = CAPEX.
In my experience (CRE), maintenance/repairs = OPEX, but actual "add value" improvements = CAPEX. That may be more of a "generality" with some exceptions, and I am not an accountant in any way/shape/form, so...
