How Much Can You Write Off for Repairs on a Rental Property?

Every landlord has that moment—kneeling under a leaky sink, staring at a busted A/C, or pacing after yet another “urgent” tenant text where you wonder, Is this fix even worth it?

The short answer? If it’s a repair, you might get that money back in tax savings faster than you think. But the IRS has rules. And confusing a repair with an improvement? That can throw a wrench into your return and lead to your books being flagged for an audit.

Let’s break this down into plain English; there is no jargon, and there is no legalese. Just honest advice for Fort Worth landlords who want to manage their rentals like a business and still sleep at night.

What Counts as a Repair?

A repair is any fix that keeps your property safe and livable without increasing its value or extending its useful life.

If it restores something to working order but doesn’t upgrade it, it likely counts as a repair. That means it’s fully deductible in the year you pay for it.

Here’s the kind of stuff we’re talking about:

• Replacing a broken garbage disposal

• Fixing a hole in the wall after a tenant moves out

• Repairing a sagging fence post

• Stopping a toilet that won’t stop running

• Servicing a malfunctioning HVAC blower motor

If it’s ordinary, necessary, and keeps the property functional, the IRS lets you write it off—no waiting.

What Counts as an Improvement?

Here’s where it gets trickier.

An improvement is any upgrade that adds value, extends the property’s life, or adapts it to a new use. These can’t be deducted all at once. Instead, they must follow the Modified Accelerated Cost Recovery System and be depreciated over 27.5 years (for residential property).

That means you only deduct a small slice of the cost each year.

Here’s the kind of work that falls in this category:

• Installing a brand-new roof

• Replacing all the windows with energy-efficient ones

• Putting in granite countertops where there were none

• Adding a second bathroom or bedroom

• Upgrading from carpet to luxury vinyl throughout the home

Let’s say you drop $12,000 on a new HVAC system. That can’t be deducted this year. Over nearly three decades, you’ll write off a portion, around $436 per year. Not exactly a fast return.

How Much Can You Write Off?

Here’s the good part: there is no limit to how much you can write off for qualified repairs. If you spent $200 fixing a leak, $500 fixing an electrical short, and $3,000 on tree removal after storm damage—guess what? That’s all deductible this tax year.

No waiting. No strings. You’re good to go as long as it’s a repair, not an improvement.

But if you replace that tree with a new $1,200 privacy fence? Different story. That becomes a capital improvement, and the deduction is spread out over time.

What’s the Safe Harbor Rule, and Can You Use It?

If your rental property has an unadjusted basis (original value + improvements – depreciation) of $1 million or less, you might qualify for the Safe Harbor for Small Taxpayers.

Here’s what that does for you:

If total annual repairs, maintenance, and even some more minor improvements are under the lesser of $10,000 or 2% of the property’s basis, you can deduct them all this year.

So if your property is worth $400,000, you can deduct up to $8,000 in repairs, maintenance, and minor improvements, even if some would normally be considered capital improvements.

It’s a fast track to bigger write-offs.

Talk to your rental property accountant about claiming this safe harbor. It’s a game changer for small to medium-sized landlords who keep things lean and efficient.

Keep Your Records Tight

The IRS won’t take your word for it. If you get audited and can’t prove your deductions were legitimate, they’ll toss them out faster than a cracked toilet seat.

Here’s what you should always hang on to:

• Receipts for labor, parts, or contractor work

• Tenant maintenance requests (email or text is fine)

• Photos showing before-and-after

• Invoices broken down by task or item

Even better? Store it digitally. Use Google Drive, Dropbox, or a property management platform with maintenance logs.

Common Mistakes to Avoid

Mislabeling Improvements as Repairs

If you remodel the bathroom and call it a “repair,” that could raise red flags. Make sure you’re classifying work honestly; it protects you in the long run.

Ignoring Minor Repair Deductions

Minor fixes add up. That $80 faucet or $60 light fixture still counts. Don’t miss them.

Skipping Professional Help

Suppose you’re not sure what’s what. Call a tax pro or reach out to us, your trusted property management team. One meeting a year can save you a bundle and help you avoid IRS headaches.

Classic Property Management Can Make Claiming Deductions Easier

If you’re managing your rentals by memory, Post-It notes, and crossed fingers, you’re leaving deductions (and peace of mind) on the table.

At Classic Property Management, we help Fort Worth landlords stay organized and ahead of the curve. We track repairs. We communicate with tenants. And when tax season rolls around, you’ll have every detail ready for your CPA.

Because good management isn’t just about fixing things fast—it’s about doing it smart, and knowing how it impacts your bottom line.

Ready to stop guessing what you can write off—and start keeping more of your income? Let’s talk. Reach out and learn how we help Fort Worth landlords thrive without burning out.