Investment property owners can generally claim tax deductions for repairs and maintenance, but not for improvements, which can only be depreciated over time. This distinction often confuses property owners, especially at tax time. Simply put, a repair is about fixing wear and tear, accidental damage, or natural deterioration to restore the property’s function without changing its character.

To claim a tax deduction for repairs, one key rule is that the expense must be incurred in the same year you’re claiming it. You can also claim repair costs if they happen after the property is ready to earn income but before any income is actually received, as long as they’re not considered initial repairs. For example, if your rental property is vacant, advertised for rent, and gets damaged before a tenant moves in, you can still claim the repair costs because the property is held for income purposes, even though you haven’t earned any rent yet.
“Here are some common examples of allowable repairs and maintenance:”

• Painting
• conditioning gutters
• maintaining plumbing
• repairing electrical appliances
• mending leaks
• replacing broken parts of fences
• replacing broken glass in windows
• repairing machinery