@PatriciaV wrote:
The bathroom remodel would be entered as "appliances, carpet, furnishings"....
Unless the cost of @lllbby's bathroom project qualifies for the de minimis safe harbor election ($2,500 or less), the project would be categorized as residential real estate and capitalized as such and not categorized as "appliances, carpet, furnishings". The remodel constitutes an improvement to the real estate and cannot be considered to be personal property.
See https://www.irs.gov/publications/p527#en_US_2024_publink1000280324
