The core distinction
A repair keeps the property in working order and is deducted in the year you pay it. An improvement betters, restores, or adapts the property and must be capitalized and depreciated.
The BAR test
The IRS uses "betterment, adaptation, restoration" to flag improvements — a new roof or an addition is an improvement; fixing a leak or repainting is usually a repair.
Safe harbors help
De minimis and small-taxpayer safe harbors let you expense some lower-cost items immediately rather than depreciating them. Track invoices to support your treatment.
Frequently asked questions
Is a new roof a repair or improvement?
Generally an improvement — it must be capitalized and depreciated, not deducted all at once.
Can I deduct repairs on a rental?
Yes, ordinary repairs are deductible in the year incurred.
Sources
Educational information and estimates only. Not tax advice. Tax rules change and vary by situation; consult a qualified tax professional before acting.