Depreciation Life Of Flooring In Rental Property

The depreciation period for flooring depends on the type you install.

Depreciation life of flooring in rental property.

They have the same useful life as your rental property. If the carpet is glued down perhaps in a basement then it becomes attached to the property and must be depreciated over 27 5 years. These types of flooring include hardwood tile vinyl and glued down carpet. This applies however only to carpets that are tacked down.

As such the irs requires you to depreciate them over a 27 5. For example if you own a duplex and live in one half you can write off only the new flooring in the rental unit but not the flooring in your own personal unit. For property used for both business and personal purposes you can only take depreciation on the portion of the flooring used in the business side of the property. Most repair costs that are results of the tenant destructive actions are fully tax deductible in the year incurred.

Like appliance depreciation carpets are normally depreciated over 5 years. Since these floors are considered to be a part of your rental property they have the same useful life as your rental property. Real estate depreciation is an important tool for rental property owners. If your rental income is from property you also use personally or rent to someone at less than a fair rental price first read chapter 5 personal use of dwelling.

The deduction to recover the cost of your rental property depreciation is taken over a prescribed number of years and is discussed in chapter 2 depreciation of rental property. Repairing after a rental disaster. Bonus depreciation can allow rental property owners to deduct the entire cost of certain capital investments all at once maximizing their federal income tax deductions for the current tax year. Most flooring is considered to be permanently affixed.