Depreciable Life Of Laminate Flooring In Rental

Most other types of flooring i e.

Depreciable life of laminate flooring in rental.

Carpeting can technically be pulled up and moved whereas laminate cannot. These types of flooring include hardwood tile vinyl and glued down carpet. Since these floors are considered to be a part of your rental property they have the same useful life as your rental property. You will depreciate new flooring in a rental over 27 5 years if it is permanent or 5 years if it is easily removed such as carpeting.

Laminate floors are treated as affixed to the structure unit of property uop and therefore should be depreciated over a period of 27 5 years. Most flooring is considered to be permanently affixed. That s why carpeting gets the special treatment. Here s the bad news.

The depreciation period for flooring depends on the type you install. Depreciation is a capital expense. Carpets are normally depreciated over 5 years this applies however only to carpets that are tacked down. How to depreciate carpets and other flooring.

Carpeting is depreciated over either five years or 27 5 years depending on how it is installed. Because of this you must capitalize depreciate them. For residential real estate carpet is depreciated over five years but put in new flooring wood tile or linoleum and it will take 27 5 years to completely depreciate the cost. When you remodel a rental home this is considered an improvement as compared to a repair because it increases the value of the rental.

You treat the improvement as separate depreciable property. Since these floors are considered to be a part of your rental property they have the same useful life as your rental property. However each item is depreciated in its own category. See placed in service under when does depreciation begin and end in chapter 2.

As such the irs requires you to depreciate them over a 27 5 year period. Most flooring is considered to be permanently affixed. Oh it gets worse. The real question is whether or not you can treat this as a repair.

Click on this irs link for more information. It is the mechanism for recovering your cost in an income producing property and must be taken over the expected life of the property. That s because new floors are expected to last the life of the property. Additions or improvements to property.

These types of flooring include hardwood tile vinyl and glued down carpet. Tile hardwood linoleum unlike carpeting are usually more or. Conversely if you replace the windows in a rental house you depreciate over 27 5 years because it s a residential property.