Is It a Repair or an Improvement?
A practical decision tree for roofs, kitchens, HVAC, software, and furniture.
The practical answer
A practical decision tree for roofs, kitchens, HVAC, software, and furniture. Confirm the facts and evidence first, apply the relevant rule second, and document the decision and follow-through.
Decisions to organize
Use these decision points to turn the topic into verifiable actions.
- Describe work and useful life
- Group project invoices
- Record placed-in-service date
Evidence checklist
- Closing statements and purchase allocation
- Improvement invoices and permits
- Rental calendar and platform statements
- Mortgage, insurance, tax, and utility records
- Sale, exchange, and depreciation schedules
Issues to flag for review
- Calling improvements repairs
- Ignoring personal-use days
- Losing basis and depreciation records
- Assuming an LLC changes tax results
Frequently asked questions
What should I review before acting?
A practical decision tree for roofs, kitchens, HVAC, software, and furniture.
When should professional review be added?
Add review when facts, forms, deadlines, elections, or consequences remain uncertain.
Sources and important note
General educational material based on the official sources below. Confirm tax-year facts and your individual circumstances before filing or acting.
Turn the guide into a plan.
Bring the records, questions, and deadlines that apply.