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skimmm
New Member

Two improvements done on my rental (new carpet >2500 & new AC <2500). AC is allowed as expense with de minimis safe-harbor, but what about the the carpet?

I know that the carpet needs to be depreciated over time as a capitalized improvement, however, I don't understand how to do this.  Do I add the amount to the adjusted basis of the deprecation amount or do I create a new depreciation for just the carpet.  I assume the latter since the depreciation of the carpet is only of the 5 years? PLEASE HELP, so confused. 

1 Reply
Coleen3
Intuit Alumni

Two improvements done on my rental (new carpet >2500 & new AC <2500). AC is allowed as expense with de minimis safe-harbor, but what about the the carpet?

Yes, you would create a new asset for the carpet. See the screen shot below.

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