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Level 1
posted Mar 4, 2020 8:21:33 AM

DEPRECIATION

I PURCHASED CARPET FOR MY RENTAL HOUSE FOR $5183 IN 2019. HOW SHOULD I ENTER THE DEDUCTION

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1 Replies
Expert Alumni
Mar 4, 2020 9:02:24 AM

If your new carpet is an improvement rather than a repair, you must treat the expense as a capital expense and depreciate.

If the carpet is tacked down, it is classified as personal property and is depreciated over five years. However if the carpet in a residential rental property is glued down, it is considered to be part of the building structure and must be depreciated over 27.5 years.