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.

Posted on Mar 07, 2014


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