A building doesn’t look after itself. At some stage, the landlord will probably be required to undertake work on his property in order to ensure that it is fit for purpose. At the very least, the property will need to be kept in good repair, but the landlord may also have plans to make more radical alterations. For example, he may wish to add a few extra floors to an office building, or convert a house into a block of flats, or even change the use of the property from residential to commercial.
All of this costs money. How can the landlord reduce these costs through the tax code? In particular, can the landlord deduct the costs of the building work in calculating his rental profits?