We paid $1800 for laminate flooring we purchased from Lowe's. We paid to $2,000 for it to be installed. May I count the $1800 as an expense because it is under $2500 and then count the $2,000 in labor as a separate expense? OR, do I have to count the project as $3800, adding it as an improvement to the capital? The unadjusted basis of the property is $70,000 so 2% is $1400 and I would not be able to count it as an expense in that regard; true? Thank you.
