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March 4, 2024
Question

New floor for rental

  • March 4, 2024
  • 1 reply
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I installed new hard wood floors and carpet in my rental property in 2023. A portion of the total cost was labor. Do I depreciate the entire amount of labor and materials or do I expense the labor and depreciate only the materials?

1 reply

Employee
March 4, 2024

You would depreciated the cost of materials plus the installation costs (labor). The whole flooring job is to be depreciated. Also include any demo costs of the old flooring.

 

Add the asset for depreciation and work through the section. Special Depreciation Allowance maybe and option to increase the amount you expense in the first year depending on your circumstances.

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