Which of the following is not considered a capital improvement for a rental activity?
A)Addition of a bathroom
B)Replacement of the roof
C)Repair of a leaky water pipe
D)New landscaping

Question

Quizplus · Accepted Answer

Capital improvements are assets that add value to a rental property and have a useful life of more than one year. A repair of a leaky water pipe is considered a maintenance expense and not a capital improvement. Adding a bathroom, replacing the roof, and new landscaping are all examples of capital improvements.

Which of the Following Is Not Considered a Capital Improvement