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Tom, I have been reading through your book and there was something about depreciation on our wall to wall carpet and vinyl flooring. Can you explain this a little more? And since we have wall to wall carpet should I claim this?
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Carpet
Carpeting, whether it's wall to wall or not, is considered 7 year property. That is, it can be depreciated over 7 years, not 39 years as a home improvement. Because it's 7 year property it is also eligible for the 50% additional depreciation rule if you purchased it new in 2010. Vinyl flooring is also 7 year property, not 39 year home improvement. -
We did not purchase it new in 2010, it was in our house when we bought it last year. The carpet is in excellent condition. So would I value it like I would my couch?Comment
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Carpet
Since the carpeting was purchased as part of the home you have two choices.
First, don't claim any separate expense for the carpeting because you are getting this deduction as part of the home depreciation.
Second, price out the value of the carpet when you bought your home and depreciate it separately over 7 years. Reduce the value of your home by the value of the carpet before depreciating your home.
99% of providers will choose option 1.Comment
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