Posted in Blog  
  on Mar 07, 2014

How to Determine the Depreciation of Carpet in a Rental Home

Carpet, like any other fixture in a rental home, is subject to depreciation over time. As a rental home owner, every landlord would have to account for this depreciation and considering it during taxation is actually a benefit for taxpayers.

Carpet depreciation is slightly different from property value depreciation or depreciation of home appliances. Regardless of the type of carpet a rental home has, the quality of the carpet and any other attribute, a carpet is classified into two categories. These categories are set in accordance with the manner of installation. A carpet may be tacked down to the floor which is the most common method of installation. A carpet may be glued to the floor which is rare but still existent in many rental homes. Usually, carpets in the living rooms and bedrooms are tacked down and those in the basement or crawlspaces are glued in many homes.

Carpet that is tacked down is a removable fixture and this asset is subjected to depreciation over a period of five years. Carpet that is glued down is a part of the property and thus becomes immovable. Carpet with this type of installation is subjected to depreciation over a period of twenty seven and a half years.

The time period is important because the value of depreciation would be much more in a five year span of time than what a glued carpet would undergo over a period of twenty seven and a half years. Many landlords determine the method of installation depending on the amount of depreciation and how it works to the advantage but in most cases, installation would be dependent on the nature of the flooring and the type of property a landlord has.

How to determine the depreciation of carpet in a rental home has a simple solution. There are tools, which actually are calculators that can determine the exact amount of depreciation after you fill up the necessary fields.

To give you an example, if you have bought a carpet in 2011 which cost you about two thousand dollars including taxes and you paid about a hundred dollars on shipment and installation then you should expect a depreciation of around four hundred dollars that year, up to seven hundred dollars the next financial year, about four hundred bucks the following year and thereon a little more than two hundred dollars in the subsequent two years ending up with a little more than a hundred dollars in the last year.


The Landlord Tenant Board: What it is and When it is Needed

Many times, there are issues between a landlord and a tenant that need to be resolved but are failed to do so, because both parties have gone too far with their actions, and have retaliated in the... More

How to Create a Residential Lease Agreement

Where there is a landlord, there will also be a tenant, and it is no surprise that these two parties can only work together once there is some sort of agreement, contract or a binding deal in place.... More

The Best Sites for Rental and Lease Agreement Templates

Many landlords find it difficult to write and draft a lease agreement. Since every State has its own general template, it can also be difficult to make sure your lease agreement meets all the criteria... More

The Best Landlord Associations for Landlords to Join

If you’re a landlord and want to manage your business in a better way, you should endeavor to get in touch with those industry experts who have the experience and the skills to help you do it. This is... More

Unpaid Rent

When you talk about the most common disputes arising between landlords and tenants, nonpayment of rent has to be there in the list. People rent their properties to earn money, and when a tenant... More

Section 8 Landlord Pros and Cons

If you have ever rented a living space and have had to move many times, you’d already know how difficult it is to find decent, affordable and secure living premises. A person has to deal with the same... More

Landlord Inspection Checklist: Rights, Letters, and Reports

Landlords across the state have the prime responsibility to make sure they inspect and up keep their property once they have rented it to the tenants. Inspections can occur monthly or yearly depending... More

Landlord Maintenance Costs and Responsibilities

Everyone knows that a landlord’s job is not easy. These folks have specific duties and responsibilities that they must perform in order to be fair. Being a landlord is not a position but it is, in... More

When to Withhold Tenant Security Deposit

Asking for a security deposit is quite common in property dealings. The reason to ask for a security deposit is to have something that would help a property owner recover some of their financial... More

How to Report Bad Tenants

Bad tenants are the worst-case scenario for any landlord; no one wants them, and if someone has them, they want them out in any way possible. There are times when landlords try as much as they can to... More