Rob[at]giganews.com wrote:

- quote -

While that source is correct for usual "repairs", I think
that a rug, or carpet, is expensive enough to require
capitalization, no matter when acquired, either before or
after commencement of rental activity.

ChEAr$,
Harlan Lunsford, EA n LA
24 Mar 2005

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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 with similar
quality carpet. Does IRS think this is an improvement or a
repair? Can you tell me why you think your answer is
correct for the IRS.

My thoughts, etc.:

I tend to want to call it a repair but almost everything
I've read so far (IRS and non IRS sources) say improvement.
One non IRS source said it depended on whether it was done
before or after placing the house in service.

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