Can I Write Off New Carpet

You re likely already depreciating the value of your property.

Can i write off new carpet.

Say thanks by clicking the thumb icon in a post. If your new carpet is an improvement rather than a repair you must treat the expense as a capital expense and depreciate it over time. If you use a single line for business and personal calls you can itemize the business calls and claim those as a deduction. According to irs any expense that increases the capacity strength or quality of your property is an improvement.

Likewise if you are a partner in the ownership of the rental house you can only deduct a percentage of the costs. This applies however only to carpets that are tacked down. For example if you live in your house for six months out of the year and rent it out for six months you can deduct 50 percent of the cost for new carpet when it is necessary to maintain the value of the place. An expense is for an improvement if it results in a betterment to your property restores your property or adapts your property to a new or different use.

But 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 a whopping 27 5 years. Like appliance depreciation carpets are normally depreciated over 5 years. If the carpet is tacked down it is classified as personal property and is depreciated over five years. If the carpet is glued down perhaps in a basement then it becomes attached to the property and must be depreciated over 27 5 years.

New wall to wall carpeting falls under this category. The improvements must still be evident when you sell. So if you put in wall to wall carpeting 10 years ago and then replaced it with hardwood floors five years ago you can t count the carpeting as a capital improvement. A business phone line or business related calls although you may not take a tax deduction for maintaining a primary phone line you may claim a separate business line.

Repairs and improvements to your workspace are tax deductible though some larger expenses such as new carpet may be subject to an asset depreciation schedule.