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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@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.
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.
$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.
$2,500 per invoice or item.
You will see the option in TurboTax in the Assets/Depreciation section.
So if I have two invoices - one for $2000 and another for $1359, can I write off both?
@pearl12970 wrote:
So if I have two invoices - one for $2000 and another for $1359, can I write off both?
Yes.
Thank you so much for the clarification.
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?
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.
Yes that is what I opted for and this was the next screen that came up
Yes, good.
Not sure if it makes a difference but i am using Turbotax Premier not Home & Business
This is the next screen
It should not make a difference.
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