How expense floating vinyl plank flooring in a rental?

Question

Hi all:

I wonder if this topic can be put to rest. I talked to a few CPAs and got varying answers as to how expense correctly the installation of new floating vinyl planks. Can I regard vinyl planks as property like carpet and use section 179 or is it classified as residential property and needs to be depreciated over 27.5? The useful life of vinyl planks is clearly less that 27.5. Can I depreciate those over a 15 year horizon? Maybe a CPA here can shed light on this problem. Thank you.

Michael Plaks · Answer

Useful life does not have anything to do with depreciation. I mean, the concept was that it should, but in reality it does not.

Floating vinyl planks are a 5-yr personal property and eligible for Section 179. Also eligible for bonus depreciation but Section 179 allows 100% while bonus depreciation does not. Why CPAs gave you different answers is a mystery to me.

Natalie Kolodij · Answer

Like Michael mentioned the actual reality of how longs things last vs. their depreciable lives are unfortunately unrelated. Carpet and LVP fall under the same category of 5 year assets that aren't permanently affixed so you can put onto a shorter life and utilize accelerated depreciation methods. Flooring like hardwood or tile would be 27.5 typically because it's pretty permanently affixed. You can't quickly and easily remove it without any residual damage, etc. Also with the mention of talking to a few CPAs- If you were just reaching out and asking a question you may have just been getting the over simplified answer vs. if it was a CPA who was your CPA that you retained/paid to complete your tax strategy and preparation.

Ashish Acharya · Answer

@Andreas W. Great question—and you're not alone in getting mixed answers. Here’s the tax treatment clarified: floating vinyl plank flooring is generally considered a capital improvement and thus part of the building structure, which means it should be depreciated over 27.5 years for residential rental property.However, if the vinyl planks are easily removable and not permanently affixed, they might be classified similarly to carpet or flooring replacements, which can fall under 5- or 15-year property and potentially qualify for Section 179 or bonus depreciation—but this is rare for vinyl planks.In most cases, especially if the flooring is glued or clicked in and not designed to be temporary, the IRS sees it as a capital improvement, not personal property—so 27.5-year depreciation is standard.If you're doing a larger rehab, a cost segregation study may help reclassify some components for faster depreciation.

This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

Andreas W. · Answer

@Natalie Kolodij

@Michael Plaks

Thank you both of you. It should be straight forward, but sometimes even professionals have differing opinions. It is totally possible that what I heard was not well thought about.

How expense floating vinyl plank flooring in a rental?

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