depriciation period on carpeting

[ljwalters]

This is for an office in home and the carpet was changed out in office only at a cost of $1556 tried asset entry and could only come up with 39 yr life. No way carpet or even vinal flooring last that long.

Linda and buddy

[Maribeth]

This is for an office in home and the carpet was changed out in office only at a cost of $1556 tried asset entry and could only come up with 39 yr life. No way carpet or even vinal flooring last that long.

Linda and buddy

Carpet used to qualify for ITC and we used 7 years.

Maribeth

[jainen]

>>No way carpet or even vinal flooring last that long.<<

In my opinion, the idea of standardized life for ACRS and MACRS was to prevent arbitrary and subjective opinions about it. If the carpet is attached to the building as a capital improvement, it is depreciated as part of the building. However, in my further opinion, a replacement carpet is not necessarily a capital improvement as it does not create new equity, or prolong the life of the building or make it suitable for a different use.

[ljwalters]

So jainen are you saying you would capitalize it over 39 years or take it all as maintance and repair.

Linda and buddy

[jainen]

>>are you saying you would capitalize it over 39 years or take it all as maintance and repair<<

Well, in my opinion if the carpet is attached to the building as a capital improvement, it is depreciated as part of the building. However, in my further opinion, a replacement carpet is not necessarily a capital improvement as it does not create new equity, or prolong the life of the building or make it suitable for a different use.

[Lion EA]

TTB says 5 years for carpeting in a rental. I could see a difference between installed wall-to-wall carpeting and a throw rug. However, I don't have many clients that provide a rug (or anything else that's not nailed down!) in a rental unit. So, when TTB says carpeting, I would take that as wall-to-wall and use 5 years.

[ljwalters]

Thanks everyone.

linda and buddy

[Terry D EA]

I think that would go under the furniture & fixtures as 7 year property.

[grandmabee]

TTB says 5 years for carpeting in a rental. I could see a difference between installed wall-to-wall carpeting and a throw rug. However, I don't have many clients that provide a rug (or anything else that's not nailed down!) in a rental unit. So, when TTB says carpeting, I would take that as wall-to-wall and use 5 years.

Office in home is NOT a rental. there is different rules for rental that's why the computer says 39 and not 27.5

[RoyDaleOne]

http://www.irs.gov/businesses/article/0,,id=134671,00.html

There is a nice table of various items, including floor covering as Section 1245 asset, including new cost and purchase cost segregation.

Because the business activity is potently needed to determined the asset class, I missed that information in the post I can not comment on which asset class to use.

http://www.irs.gov/businesses/article/0,,id=134180,00.html

Go to IRS web site and search for Cost Segregation Audit Techniques Guide - Table of Contents.

The links don't work for some reason.

[Lion EA]

My short term memory is fried, so I missed the OIH. 39 years doesn't seem right for carpet. But, new carpet is not a repair, either. Felt more sure re a rental home; not at all sure for OIH.