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A property owner has enquired about the deductibility of various works carried out on their rental properties. The DGT has ruled that repairs intended to maintain the property's use are deductible as expenses, whereas improvements that increase capacity or habitability must be deducted through depreciation.
Landlords must distinguish between maintenance repairs and capital improvements to ensure correct tax treatment, as the latter requires spreading the cost over the asset's useful life rather than deducting it all at once.
The tax team reviews your specific situation.
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