Maintenance is generally deductible; a new or fully resurfaced driveway is capital. Crack sealing and small patches keep the existing surface in service. Replacement or a material expansion creates a land improvement.
The expense-specific result is below. The shared BAR test, de minimis safe-harbor rule, and source guide live on the deductions hub so they are not repeated on every expense page.
A worked classification for driveway repair
A $900 crack-seal and patch job is a current repair. A $14,000 full repaving project is capitalized as a 15-year land improvement.
Records that support this treatment
Keep area repaired, scope and depth of work, photos, paving invoice, drainage details, personal-use allocation, and placed-in-service date.
Keep the invoice, the decision, and the Schedule E placement together. The broader rental property deductions guide and the Schedule E walkthrough cover the full return.
This is general information for organizing rental records, not tax advice. Elections, entity structure, mixed use, and the exact unit of property can change the answer. Bring the invoice and the underlying facts to a CPA before filing.