Depreciable Life Of Laminate Flooring In Rental

Most flooring is considered to be permanently affixed.

Depreciable life of laminate flooring in rental. The real question is whether or not you can treat this as a repair. Most flooring is considered to be permanently affixed. Additions or improvements to property. As such the irs requires you to depreciate them over a 27 5 year period.

Laminate floors are treated as affixed to the structure unit of property uop and therefore should be depreciated over a period of 27 5 years. Conversely if you replace the windows in a rental house you depreciate over 27 5 years because it s a residential property. For residential real estate carpet is depreciated over five years but put in new flooring wood tile or linoleum and it will take 27 5 years to completely depreciate the cost. Depreciation is a capital expense.

You can begin to depreciate rental property when it is ready and available for rent. Since these floors are considered to be a part of your rental property they have the same useful life as your rental property. Most other types of flooring i e. The depreciation period for flooring depends on the type you install.

That s because new floors are expected to last the life of the property. Since these floors are considered to be a part of your rental property they have the same useful life as your rental property. Tile hardwood linoleum unlike carpeting are usually more or. Click on this irs link for more information.

Here s the bad news. Carpeting can technically be pulled up and moved whereas laminate cannot. You will depreciate new flooring in a rental over 27 5 years if it is permanent or 5 years if it is easily removed such as carpeting. Carpets are normally depreciated over 5 years this applies however only to carpets that are tacked down.

That s why carpeting gets the special treatment. You treat the improvement as separate depreciable property. Because of this you must capitalize depreciate them. Oh it gets worse.

These types of flooring include hardwood tile vinyl and glued down carpet. However each item is depreciated in its own category. Most other types of flooring are depreciated using the 27 5 year schedule only. Carpeting is depreciated over either five years or 27 5 years depending on how it is installed.

How to depreciate carpets and other flooring. 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. When you remodel a rental home this is considered an improvement as compared to a repair because it increases the value of the rental.