Property Management

A Wisconsin landlord who installs a new roof on a rental property may deduct the cost as:

AA current operating expense in full
BA capital improvement depreciated over its useful life for tax purposes✓ Correct
CNothing — improvements are not deductible
DA management fee

Explanation

Major improvements like a new roof are capital expenditures that must be depreciated over their useful life for tax purposes, rather than deducted as a current operating expense.

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