Res. rental

[Unregistered]

I have a client who sold Res. rental property in 2005. This prop. was purchased in 1991.

Is there any special rules apply?

He installed carpet in 2003. I think this have to be dep. over 27.5 just like building, right?

Thank you.

[Matt Sova]

Carpet depr

Carpeting, furniture and appliances in a rental are MACRS 5 year.

[Unregistered]

Carpeting, furniture and appliances in a rental are MACRS 5 year.

Thanks Matt.

Is there any special rule apply for sale of this res. rental? (Since it was purchased in 1991)

[Brian EA]

I have a client who sold Res. rental property in 2005. This prop. was purchased in 1991.

Is there any special rules apply?

He installed carpet in 2003. I think this have to be dep. over 27.5 just like building, right?

Thank you.

Was the carpet depreciated in 2003 or are you preparing 2003 taxes now.

[Unregistered]

Was the carpet depreciated in 2003 or are you preparing 2003 taxes now.

I am preparing 2005 tax return. Carpet was dep. in 2003. But I was not sure if it was done right. Client used different method.

[Brian EA]

I am preparing 2005 tax return. Carpet was dep. in 2003. But I was not sure if it was done right. Client used different method.

Since the property is sold you might as well let it go. Continue with the same depreciation as in 2003 .It would not make any sense to amend the last 2 years return

Good luck