Skip to main content
Level 3
March 2, 2025
Question

Depreciate or Expense?

  • March 2, 2025
  • 1 reply
  • 5 views

Daycare client installed new hardwood flooring with a cost of $4700 in rooms use by both family and daycare kids. Because the flooring is an improvement, is depreciation the only option?  

Your assistance is appreciated. 

This topic has been closed for replies.

1 reply

Level 15
March 3, 2025

If the total flooring that was replaced was 1/3 or less of the total flooring of the house, deduct it.

If it was more than 1/3, I would lean towards depreciating it.