I have FLOORING on my depreciation schedule for rental property. I've replaced the carpet and could count it as a "less than $2500" item. Do I delete the old carpet?

The old carpet has 2 years left on depreciation schedule. If I delete, what happens? If I don't need the deduction this year, should I just depreciate the new carpet? What do I do with the old carpet as far as depreciation schedule is concerned?

1381

Expert Alumni

Mar 21, 2021 12:40:58 PM

Yes, should "dispose" of the old carpet in TurboTax. Your proceeds will be zero, so you will incur a loss on the disposal. If you do nothing with it, it will continue to depreciate for the remainder of it's depreciable life.

Level 2

Apr 4, 2021 1:30:34 PM

I put in new carpet. How do I delete the old depreciable carpet, and replace with the new carpet?

Or do I just delete the old in Turbo Tax and take the new carpet expense as a deduction?

Level 15

Apr 4, 2021 1:33:17 PM

You have to SELL or Dispose of the old one properly. Maybe enter a sell for $0.

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I have FLOORING on my depreciation schedule for rental property. I've replaced the carpet and could count it as a "less than $2500" item. Do I delete the old carpet?