You can deduct the cost of repairs on your rental property in the year you paid. However, you may not deduct the cost of improvements. You must recover the improvement cost through depreciation, rather than deducted in the year paid.

A repair just keeps the property in good operating condition and does not materially add value to the property. Some examples of repairs are: painting, fixing leaks and cracks, repairing broken gutters, and replacing broken doors or windows or other parts of the rental property.

An improvements adds to the value of the property or substantially prolong its life or adapts it to new uses. Examples of improvements include: Additions a room, swimming pool, a deck, fence or new roof
, replacing the plumbing system.

The IRS regulates that an extensive restoration/remodel of a rental property is considered an improvement. Moreover, any repairs made as part of the project are to be considered as part of the improvement.