Can I Depreciate My Carpet
In 2003 I bought a house to use as a primary residence for a year with plans to use it as a rental property in 2004. I replaced all of the carpet around August 2003 and in July 2004 I began renting the house out. How should I be reporting the carpet. for tax purposes. I am using Turbo Tax Premier and need to know if I should enter it as both a remodeling improvement and as a depreciable asset or what?
Thanks for any help.
Neither. Your carpet is personal property in your situation, and as such, it is a non-deductible personal expense.
I would do it the same way Blueford explained.
yes
I recommend that you go online and do a search for 1031 exchange. Besides numerous companies selling their wares, you will find information on the details of an exchange--how many properties you can designate, how long you have to designate them and to close, etc.
labluver,
What do you mean when you say you have just entered the "1031 exchange zone"?
What is the "zone", or better yet, what have you actually done toward an exchange?