Take the total amount of the security deposits you hold (A), and subtract the probable number of tenants asserting their rights, (B), multiplied by the average judgment in small claims court, (C). The problem is that the software packages don’t really explain what’s going on. The Tenant Pays. One form of accelerated depreciation is the double declining balance method. Using the alternative depreciation system, carpets have a usable life … There are plenty of tricks to repair carpet that won’t involve a security deposit deduction. Generally, tenants should ask this type of question before moving in and take comprehensive photos of a unit before they unload their furniture. In contrast, large rips or indelible stains justify a deduction from the tenant’s security deposit for repairing the carpet or drapes, or replacing them if that is reasonably necessary. Assuming that the carpet is three years old, and the small marks to which you refer do not constitute ordinary wear and tear (highly unlikely), you could be liable for 40% of the replacement cost of a similar carpet. If you are planning to have the carpet professionally cleaned, you have another opportunity to get an estimate of the carpet’s age—ask the carpet cleaner. Was marked on the report as ‘awful’.” They state the the total replacement will cost almost $9000 and I would have to pay about 30% of that amount. Same is used with rental cars. You keep going like this until your annual depreciation is equal to or less than your original straight line amount, in this case $10,000. The landlord inadvertently tipped you off that the carpet would be a problem when you moved in. Which brings up another thing people often ask about. One can do things like carefully trimming off the burned top of the pile on the carpet. If the carpet is thoroughly cleaned when we move out, and all that remain are the few marks we are responsible for, can she make us replace the entire carpeting? Then you multiply the undepreciated value of the asset by the fraction. I also had them take pictures of spots and stains that were already in the carpet before we moved in. In CA, if they cannot show a receipt, you are likely being ripped off. Download your copy today! Now, after have lived there three years, they are trying to charge me almost $2800 to replace the rugs stating that “I cannot remove the flooring, as it had to be replaced do to the odor. http://www.bassets.net/?referrer=dCalcHyperlink. The landlord has to eat the replacement cost despite the damage beyond ordinary ware and tear. Of the questions asked by people struggling with business tax returns, some of the most common have to do with depreciation. If the nail polish came out after a carpet cleaners machine was used, then I’d not charge the tenet. The taxpayer never has to make the depreciation calculations. If you seek legal advice, call us at. This is also easy to say and explain and removes a judgment call. We do but after two years of living there, the carpet is definitely worn down. Required fields are marked *. Getting back to the question. Or, cutting out a little piece of the carpet in a closet and gluing it in a small stained area that one has carefully removed like a hair plug. In your case, we know that the carpet was not new when you moved in. No matter when you bought the asset, the depreciation starts as of the 183rd day of the year. Generally, the business owner has bought one of the tax software packages, such as TurboTax or TaxCut. For residential household and personal items, lifespan will vary depending on the quality of materials and workmanship, frequency of use or misuse, storage conditions and care.