If I replace carpeting with linoleum due to allergies is it a capitol expense for taxes?

Question

I have 3 children, 2 of them have been diagnosed with mild to severe allergies along with myself and my husband. We live in a house that was built in early 70's. The carpeting is very old, and contributing to the children's allergies. I am trying to find out if replacing the carpeting would qualify as a capital expense for tax purposes. Do I need any special paperwork from MD?

Thanks for information.

Answer 1

I actually had this same situation with a client. They replaced their carpeting with Pergo flooring for their daughter's allergies. The doctor wrote a note so that was not a problem. In order to verify that it actually decreased the value of their home, they had the county appraiser reassess the value of their home. It dropped by $6,000 so we were able to take the deduction. Keep in mind a couple of things:

1) You must have a note from the physician saying it is required for a medial reason

2) You must have the value of the home both before and after the linoleum was put in.

3) There cannot be an increase in the value of the house due to the changes.

4) It is deductible as a medical expense . Medical expenses are limited to the amount greater than 7.5% of your income. SO if you made $100,000. Only amounts greater than $7.500 are deductible. You can add other medical expenses to this cost to try to meet that threshold.

Answer 2

At first this sounds like it could qualify for a medical deduction. Check out the IRS site for medical deductions. Note that it in order to start taking a deduction, the expenses have to be over a 7.5% of your adjusted gross income. You can only deduct the amount over the 7.5%.

Here is a good link http://taxes.yahoo.com/tips/deduct/medical.html

Answer 3

Save your receipts and you'll be able to write it off when you sell the house reducing your capital gains.

Otherwise you won't be able to do so until then.

Check with a Tax professional though.

Answer 4

If you can have your doctor write that it is medically necessary then it would be listed under the medical section of your itemized deductions, Schedule A, and the part that exceeds 7.5% of your adjusted gross income would be deductible.

Answer 5

i donot know about md.but in cal.putting down linolemum is costly and the new carpets are better made and they can be treeted for aleriges. but i would say if you own your home then yes you should be able to hold out taxes

Answer 6

My domicile has a separate bathing room and bathroom. i have purely replaced the lino contained in the lavatory with vinyl tiles (timber result from £a million keep) and a small pedestal rug and in my bathing room I actually have carpet with a bath-part rug - hotter on the ft !

Answer 7

No, you can't write that off. It makes your house look better to sell.