How do I deduct new carpeting?

Under the new 2018 tax rule, carpeting is eligible for the 100% bonus depreciation rule that allows it to be deducted in one year.

If the carpeting is in a room used 100% for your business, deduct 100% of the cost. If the carpeting is in a room used by your business and your family, deduct your Time-Space Percentage of the cost.

These rules apply whether you are replacing carpeting in one room or every room in your home.

Claim expenses for new carpeting on IRS Form 4562 Depreciation, line 14.

If you installed wood or tile flooring in rooms that represented less than half of the total square feet of your home, treat this as a repair and deduct it in one year on Form 8829. If it represented 50% or more of the square feet of your home, you can still treat this as a repair using the 100% bonus depreciation rule. However, the 100% bonus depreciation rule declines to 80% in 2023.

Tom Copeland - www.tomcopelandblog.com