Is changing carpet in the entire house considered a major renovation? US Taxes?
by Jeff on Dec.31, 2008, under Renovation
anns2007 asked:
We changed carpeting for the entire home last year (2007) – about 1400 sqft. Does IRS consider this a major renovation or repair? I am considering taking a deduction on the sales tax paid in my itemization – for ‘Major Renovations or Repairs’.
We changed carpeting for the entire home last year (2007) – about 1400 sqft. Does IRS consider this a major renovation or repair? I am considering taking a deduction on the sales tax paid in my itemization – for ‘Major Renovations or Repairs’.
Thanks
Sai
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3 comments for this entry:
January 1st, 2009 on 4:45 pm
not repair, but i’d say you could squeeze it into rennovation, however i believe their is a minimum cost issue.
r>
not repair, but i’d say you could squeeze it into rennovation, however i believe their is a minimum cost issue.
January 2nd, 2009 on 11:30 pm
For your primary residence? No. Carpeting is considered a “wearable” part.
If the upgrade does not increase the value of the property (like replacing it with hardwood), then it does not qualify. The rule of thumb is that if it requires a Work permit, it qualifies. If you don’t need a permit, then it won’t qualify. In other words, some one is going to get your money, either the town or the feds. But, not necessarily both.
r>
For your primary residence? No. Carpeting is considered a “wearable” part.
If the upgrade does not increase the value of the property (like replacing it with hardwood), then it does not qualify. The rule of thumb is that if it requires a Work permit, it qualifies. If you don’t need a permit, then it won’t qualify. In other words, some one is going to get your money, either the town or the feds. But, not necessarily both.
January 2nd, 2009 on 11:48 pm
No, replacing the carpet is a normal wear and tear type of thing. A major renovation would be adding another bathroom or a new kitchen. It is considered home beautification because new carpet is not a “must” like maybe a bathroom or new roof would be.
r>
No, replacing the carpet is a normal wear and tear type of thing. A major renovation would be adding another bathroom or a new kitchen. It is considered home beautification because new carpet is not a “must” like maybe a bathroom or new roof would be.