Does a landlord count labor as part of an asset when installing flooring?

Forum|Forum|1 year ago
January 23, 2025
1 reply
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We paid $1800 for laminate flooring we purchased from Lowe's. We paid to $2,000 for it to be installed. May I count the $1800 as an expense because it is under $2500 and then count the $2,000 in labor as a separate expense? OR, do I have to count the project as $3800, adding it as an improvement to the capital? The unadjusted basis of the property is $70,000 so 2% is $1400 and I would not be able to count it as an expense in that regard; true? Thank you.

Best answer by ThomasM125

You cannot separate the labor from the materials, it must be added to the material cost to arrive at the cost of the improvement. Since the cost is over $2,500, it would not qualify for expensing.

ThomasM125Answer

You cannot separate the labor from the materials, it must be added to the material cost to arrive at the cost of the improvement. Since the cost is over $2,500, it would not qualify for expensing.

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