1) This rental property upgrade may qualify to be fully expensed under the Safe Harbor Election for Small Taxpayers. TurboTax will ask you about this election at the beginning of the Assets/Depreciation section of your Rental Property. If you choose this election, you can expense up to $10,000 in costs that would otherwise be depreciated over a very long time.
2) Flooring improves the property as is considered an "improvement" asset for depreciation.
3) Date purchased would be the date the installation was completed and ready for use.
4) Yes, you have used it 100% for your rental business since it was installed.
5) Since you are the original owner of the flooring, you may take the Section 179 deduction up to the allowable limit.
Claiming the Safe Harbor Election or the Section 179 deduction will offset your rental income this year. Since depreciation can't create an operating loss, any unused portion will be carried over to offset future income.
If you choose to claim a portion this year and spread the rest over the asset's useful life, your current year income will be reduced a lot this year and a little for a very long time.
The choice between writing off the full amount and claiming depreciation expense over many years depends on your estimate of 1) how long you expect to keep renting the property and 2) how much income you expect over that same period.
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