I'm a new landlord and have started to review my rental
income/expenses for the IRS and reading the IRS literature now.

Tax question:

I replaced the worn rug in the rental house. Does IRS think this is
an improvement or a repair? Can you tell me why you think your answer
is correct for the IRS. I'm inclined to think this is a repair since
the house had carpet in it already.

Rob wrote in message ...
I'm a new landlord and have started to review my rental
income/expenses for the IRS and reading the IRS literature now.

Tax question:

I replaced the worn rug in the rental house. Does IRS think this is
an improvement or a repair? Can you tell me why you think your answer
is correct for the IRS. I'm inclined to think this is a repair since
the house had carpet in it already.

you can call them (wait until after tax season so you can get thru). but
since 25% of the answers are wrong, call them 4 times and take the matching
3. :-)

Rob wrote in message ...
I'm a new landlord and have started to review my rental
income/expenses for the IRS and reading the IRS literature now.

Tax question:

I replaced the worn rug in the rental house. Does IRS think this is
an improvement or a repair? Can you tell me why you think your answer
is correct for the IRS. I'm inclined to think this is a repair since
the house had carpet in it already.

This is Turtle.

The IRS only see's gain or loss on items like this. If you want to get complex ,
you can call the IRS hot line and debate any issue you like.

TURTLE

In article , Rob wrote:

I'm a new landlord and have started to review my rental
income/expenses for the IRS and reading the IRS literature now.

Tax question:

I replaced the worn rug in the rental house. Does IRS think this is
an improvement or a repair? Can you tell me why you think your answer
is correct for the IRS. I'm inclined to think this is a repair since
the house had carpet in it already.

Take the other advice to go look it up or call the IRS. But
I'll go out on a limb and speculate that it is an improvement.
I think it has to do with how long the carpet will last. Every
building has to be freshened up every 10 to 20 years, so I
think it would go as part of an improvement.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708
Newave Communications http://www.johnweeks.com
================================================== ====================

On Mon, 21 Mar 2005 11:53:16 -0600, "John A. Weeks III"
wrote:

In article , Rob wrote:

I'm a new landlord and have started to review my rental
income/expenses for the IRS and reading the IRS literature now.

Tax question:

I replaced the worn rug in the rental house. Does IRS think this is
an improvement or a repair? Can you tell me why you think your answer
is correct for the IRS. I'm inclined to think this is a repair since
the house had carpet in it already.

Take the other advice to go look it up or call the IRS. But
I'll go out on a limb and speculate that it is an improvement.
I think it has to do with how long the carpet will last. Every
building has to be freshened up every 10 to 20 years, so I
think it would go as part of an improvement.

-john-


So far my readings seem to support your answer and my partner wants to
do it this way too. One non IRS reading seemed to think it depended
on whether the carpet was replaced before or after the rental home was
placed into service (available for rent).

I don't want to call the IRS because they aren't legally responsible
for their answers. It was on the news some years ago.

thanks for your reply.