IF you don't mind, I'd like to ask if we can handle separate questions separately.
I only get credit when you rate one ... if I keep answering on the same questions without you either rating on the first one first, OR asking it as a separate questions, the I only get credited on time.
(Don't LOVE that part of the system myself)
But for now, lets go ahead and deal with the second one here:
On the rental. you can use schedule E
to write off repairs and maintenance ...
and then the actual improvements to the structure itself? You'll get the benefit of that by it increasing the cost basis when you sell.
SO, basically, the IMMEDIATE gratification comes when you do regular repairs, (replacing doorknobs, repairing a cabinet or counter top, painting, and all the other regular day to day expenses, advertising driving back and forth to the property
But when you actually make an improvement like NEW cabinets, new deck, adding TO the property in some way ... that increases your basis in the property, so you'll pay less in capital gains
tax when you sell it.
Here's a pretty good listing of the two:
Repairs & Maintenance:
refinishing a wood floor
repainting a room
repairing a roof
repairing existing plumbing
repairing existing appliances
replacing a doorknob
replacing a window
replacing a broken smoke detector
replacing rotted floorboards
replacing cracked floor tiles
adding an addition
adding central air conditioning
installing a security system
installing brand new carpet
replacing an entire roof
replacing all existing plumbing
replacing all existing electric
renovating a kitchen
replacing all windows
Hope this helps
Positive Feedback is appreciated. That's how I get credit for the work.