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

[pearl12970]

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?

[tagteam]

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.

[pearl12970]

$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.

[tagteam]

$2,500 per invoice or item. 

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

[pearl12970]

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

[tagteam]

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@pearl12970 wrote:

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

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Yes.

[pearl12970]

Thank you so much for the clarification.

[pearl12970]

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?

[tagteam]

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.

[tagteam]

[pearl12970]

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

[tagteam]

Yes, good.

[pearl12970]

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

[pearl12970]

This is the next screen

[tagteam]

It should not make a difference.