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Level 2
posted Feb 18, 2023 10:30:01 AM

Rental property item classification

Hello - In my rental property, I replaced the old worn carpet with new flooring. Is this considered a repair or improvement?  Thank you in advance.  -Jim

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1 Replies
Expert Alumni
Feb 18, 2023 10:55:56 AM

It depends. Replacing all of the flooring in a rental property is an improvement, not a repair. In contrast, mending a hole in a carpet is a currently deductible repair. 

 

See this help article for more information and instructions on entering improvements to a rental property in TurboTax.


For further guidance on this issue, see IRS Pub. 527 - Residential Rental Property