Quick Answer
Yes, in most cases flooring placed inside an existing nonresidential building qualifies for Section 179 expensing as Qualified Improvement Property (QIP) under the IRS rules in effect for 2026. Flooring in a residential rental property generally does not qualify for Section 179 because Section 179 is limited to property used in an active trade or business. Always check IRS Publication 946 and confirm with a CPA before claiming.
This is a general guide, not tax advice. Tax rules change every year and the answer depends on your entity, state, and how the flooring is used.
What Section 179 Actually Allows
Section 179 lets a business expense (rather than depreciate over years) qualifying property placed in service that year, up to the annual cap (1.16 million USD for tax year 2025, with the phase-out starting at 2.89 million USD). To qualify, the property must be used more than 50 percent in an active trade or business.
Flooring as Qualified Improvement Property
Interior improvements to nonresidential real property (offices, retail, restaurants, warehouses, medical) made after the building was first placed in service generally count as QIP. Flooring replacement inside an existing commercial building fits this category. QIP is 15-year property under MACRS, which means it is eligible for Section 179 and for bonus depreciation.
What Does NOT Qualify
- Residential rental flooring. Section 179 is excluded for residential rental property (Section 280A and related rules).
- New construction. Flooring installed as part of a brand-new building is part of the building's structural basis, not QIP.
- Building enlargement. Floors added during an addition do not qualify.
- Elevators, escalators, and structural framework. Specifically excluded.
Bonus Depreciation as a Backup
Even when Section 179 is not available, QIP flooring qualifies for bonus depreciation. The 2026 bonus rate phased down to 40 percent under current law, with proposals in Congress to restore 100 percent. Bonus depreciation has no business-income limit, which is why residential rental landlords use it instead.
Practical Examples
- Dentist replacing the office LVP: typically eligible for Section 179.
- Landlord recarpeting an apartment: not Section 179; depreciate over 5 to 27.5 years or use bonus.
- Restaurant epoxy kitchen floor: typically eligible for Section 179.
- Home office flooring in your personal residence: the home office portion only, prorated, and only if it meets the strict home office rules.
Frequently Asked Questions
Does the answer change for tenants vs owners?
Yes. Tenants almost never see the same financing, removal, or warranty terms an owner gets. Most retailers will only sell to whoever is on title or has written landlord permission.
Is the price quoted in pounds the same in dollars?
No. UK and US flooring markets price differently: the UK quotes per square metre with VAT, the US quotes per square foot pre-tax. Multiply UK per metre by roughly 0.093 to compare per square foot.
Will the answer change in five years?
Probably. Tax thresholds, retailer line-ups, and warranty terms shift every year. Always confirm with the source before signing a contract.
Does the same apply for commercial buildings?
Mostly no. Commercial flooring carries different fire ratings, slip ratings, and depreciation treatment than residential. Anything you read here assumes a typical owner-occupied home unless stated otherwise.
Pro Tips
- Get the quote in writing. Verbal estimates from any retailer or contractor are worth nothing when disputes happen.
- Keep your receipts and lot numbers for at least the length of the warranty. Most claims are denied because the buyer cannot prove what was bought.
- Read the financing small print. Most "interest free" offers carry deferred interest, which means full retroactive interest if you miss the payoff date by one day.
- Ask about disposal fees up front. Removal of the old floor can add 1 to 3 dollars per square foot if not bundled.
Bottom Line
The right answer here depends on your home, your budget, and your local market. Use the numbers as a starting point, get at least two written quotes, and never sign on a contractor's clipboard at the door without 24 hours to read the contract.
Real-World Section 179 Examples
A self-employed accountant spending 18,000 USD on new office LVP in 2026 can typically expense the full amount under Section 179, knocking 18,000 USD off taxable income that year. The same accountant adding flooring in a personal residence's home office: only the home-office percentage qualifies, and the home-office rules are strict.
A landlord recarpeting a single-family rental for 4,500 USD cannot use Section 179. They depreciate the carpet over 5 years (carpet is 5-year property), or take 40 percent bonus depreciation in year one and depreciate the rest.
What to Document
- The date the flooring was placed in service (not ordered or paid for).
- The square footage and cost per square foot.
- Whether the building is residential rental, nonresidential, or mixed.
- The contractor invoice, broken out for material and labour.
- Photos of the install showing the business use of the room.
