ljwalters Posted March 5, 2012 Report Share Posted March 5, 2012 New Carpet in a rental house. Clients distroyed the old carpet with cats. is it expensed or depreciated? If depreciated for how long? Linda Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 5, 2012 Report Share Posted March 5, 2012 Expense it. Quote Link to comment Share on other sites More sharing options...
SCL Posted March 5, 2012 Report Share Posted March 5, 2012 carpet is a specifically noted 5 year rental property class. i'm assuming the amount is a thousand or more (2 or 3+ thousand? - it helps to know the amount and in relation to the gross rent). Quote Link to comment Share on other sites More sharing options...
jainen Posted March 5, 2012 Report Share Posted March 5, 2012 >>carpet is a specifically noted 5 year rental property class<< Carpet may be a capital improvement if it adds to the life of the building or makes the building useful for another purpose. In other words, if you upgrade from the old sawdust floor system to a nice Persian weave, depreciate over five years. If you're just fixing where the cat peed, expense it. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.