Tax Recovery Period For Flooring In Residential Real Estate

That means if you have a property worth 200 000 you can deduct.

Tax recovery period for flooring in residential real estate. On your 2017 tax return you d fill in the first line for a residential rental property with the information on your house its acquisition date in 2015 its 300 000 basis and your. You categorize your vinyl flooring as a new asset under real estate property. As such the irs requires you to depreciate them over a 27 5 year period. Since these floors are considered to be a part of your rental property they have the same useful life as your rental property.

When it comes to a property the irs has set 27 5 years of useful life as the depreciation period for residential real estate. You can allocate 85 136 000 160 000 of the purchase price to the house and 15 24 000 160 000 of the purchase price to the land. Real estate investors can take advantage of numerous tax incentives on everything from rental properties to shopping centers. For apartment buildings and other residential rental buildings the recovery period is also unchanged at 27 5 years.