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Is new hardwood floor installation considered a repair or improvement for rental property?

We removed carpets from two bedrooms and installed hardwood in both rooms. Is this considered an improvement or repair? Can I write this off as an expense?

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Is new hardwood floor installation considered a repair or improvement for rental property?


@pearl12970 wrote:

And once I enter it as an asset this is the next screen. I have no option to enter it an an expense.


Do not enter it as an asset. Enter it as expense.

 

Once you indicate everything you bought cost $2,500 or less (on that screen) you should be done.

 

Go back to Expenses and enter the cost in that section under Miscellaneous Expense.

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26 Replies

Is new hardwood floor installation considered a repair or improvement for rental property?

If you could manage to get invoices for each room, or both, for $2,500 or less, you could deduct the entire amount under the de minimis safe harbor.

 

Otherwise, the installation of hardwood floors is on the order of an improvement.

Is new hardwood floor installation considered a repair or improvement for rental property?

$2500 for each room or both rooms cumulatively? How may I deduct the entire amount under the de minimis safe harbor? I didn't come across that option yet on Turbotax.

Is new hardwood floor installation considered a repair or improvement for rental property?

$2,500 per invoice or item. 

 

You will see the option in TurboTax in the Assets/Depreciation section.

Is new hardwood floor installation considered a repair or improvement for rental property?

So if I have two invoices - one for $2000 and another for $1359, can I write off both?

Is new hardwood floor installation considered a repair or improvement for rental property?


@pearl12970 wrote:

So if I have two invoices - one for $2000 and another for $1359, can I write off both?


Yes.

Is new hardwood floor installation considered a repair or improvement for rental property?

Thank you so much for the clarification.

Is new hardwood floor installation considered a repair or improvement for rental property?

on Turbotax,it asks me how would you like to categorize this asset?

Residential Rental Real Estate

Appliances, carpet,furnishings,

Land improvements.

 

Which category should I select for hardwood flooring?

Is new hardwood floor installation considered a repair or improvement for rental property?

You would not enter the hardwood floors as an asset; you would enter the cost as an expense. 

 

There is a screen that asks whether you made a purchase of $2,500 or less.

Is new hardwood floor installation considered a repair or improvement for rental property?

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Is new hardwood floor installation considered a repair or improvement for rental property?

Yes that is what I opted for and this was the next screen that came up

IMG_9408.jpg

Is new hardwood floor installation considered a repair or improvement for rental property?

Yes, good.

Is new hardwood floor installation considered a repair or improvement for rental property?

Not sure if it makes a difference but i am using Turbotax Premier  not Home & Business

Is new hardwood floor installation considered a repair or improvement for rental property?

IMG_9409.jpg

This is the next screen

Is new hardwood floor installation considered a repair or improvement for rental property?

It should not make a difference. 

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