A few questions on expensing/depreciating new LVPs for rental

[David V.]

Hello,

I am wondering if there are any circumstances in which i can expense in the current year the purchase and installation of new LVP flooring that will be a floating floor? More specifically,

1. Are there any circumstances where i can expense? For example, by using one of the safe harbors? Also, would anything change if I purchased the LVP separately online and then hire a contractor to install the LVP? Thus, paying two different entities.

2. My guess is that i have to depreciate the new floating floor but not sure if it gets the same treatment as carpets (i think depreciated over 5 years) since its not glued to floor? If not 5 years, then how many?

3. Would i be eligible for bonus deprecation/179?

4. Unrelated question? Is the cost of painting (interior only) a rental property deemed an expense that can be entirely deducted in that year?

5. Unrelated question. I paid for extensive repairs for one of my my rental properties deck in 2022. The cost of the repair was $2,800. I am assuming the cost can be expensed but when does a repair become an improvement? For example, all the deck boards, railings, baluster and a coule joists were replaced.

I am sure for some of you these are basic questions but i would greatly appreciate any assistance you can provide.

regards

dave

[Michael Plaks]

@David V.

1. Expense in its technical sense - usually no, unless the total cost is under $2,500. However see #3 which is basically expensing. Installation is part of the purchase cost, not treated separately.

2. Floating floor is a 5-yr personal property, same as carpet.

3. Yes, eligible for both 179 and 100% bonus

4. Expense, fully deductible, unless done as part of a bigger remodeling project.

5. This is a very complex question, impossible to answer here. And your specific situation needs a more detailed analysis.