Does a landlord count labor as part of an asset when installing flooring?

[charjean47]

We paid $1800 for laminate flooring we purchased from Lowe's.  We paid to $2,000 for it to be installed.  May I count the $1800 as an expense because it is under $2500 and then count the $2,000 in labor as a separate expense?   OR, do I have to count the project as $3800, adding it as an improvement to the capital?  The unadjusted basis of the property is $70,000 so 2% is $1400 and I would not be able to count it as an expense in that regard; true?   Thank you.

[ThomasM125 · Accepted solution]

You cannot separate the labor from the materials, it must be added to the material cost to arrive at the cost of the improvement. Since the cost is over $2,500, it would not qualify for expensing.