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. 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. 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. Straight line depreciation is the most common form of depreciation in which the value of the rental property is evenly reduced each year over the useful life of the asset.

Most repair costs that are results of the tenant destructive actions are fully tax deductible in the year incurred. Most flooring is considered to be permanently affixed. This applies however only to carpets that are tacked down. It allows you to deduct the costs from your taxes of buying and improving a property over its useful life and therefore.

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. 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. Repairing is the key to your tax treatment replacing destroyed appliances carpet and linoleum are an asset and depreciated 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.

These types of flooring include hardwood tile vinyl and glued down carpet. As such the irs requires you to depreciate them over a 27 5. Real estate depreciation is an important tool for rental property owners. Like appliance depreciation carpets are normally depreciated over 5 years.