Security Deposit Normal Wear & Tear Calculator
Calculates legally compliant, depreciated security deposit deductions based on IRS asset useful life guidelines (Carpet: 5 years; Interior Paint: 3 years; Appliances: 10 years; Blinds: 3 years) to prevent unlawful tenant withholding disputes.
Formula
Remaining Value = Max(0, Original Cost × ((Useful Life - Age) ÷ Useful Life)); Lawful Deduction = Remaining Value
1. Useful Life Schedule (IRS / HUD Guidelines): - Carpet / Vinyl Flooring: 5.0 Years (60 Months) - Interior Wall Paint: 3.0 Years (36 Months) - Appliances (Stove/Fridge): 10.0 Years (120 Months) - Window Blinds: 3.0 Years (36 Months) 2. Remaining Useful Life % = Max(0%, (Useful Life - Age) ÷ Useful Life) 3. Maximum Lawful Depreciated Deduction = Original Cost × Remaining Useful Life % 4. If Age >= Useful Life: Deductible Value = $0.00 (Asset was fully depreciated; tenant owes $0 regardless of damage)
Inputs
- Damaged Asset Category
- Original Replacement Cost ($)
- Age of Asset When Tenant Moved Out (Years)
Worked example
Calculating the maximum lawful security deposit deduction for a ruined 3-year-old carpet.
Outcome: Carpet has an IRS useful life of 5 years. At 3 years old, 40% of its useful life remained (2 years ÷ 5 years). The maximum lawful deposit deduction is $480 ($1,200 × 40%). Charging the tenant the full $1,200 replacement cost is unlawful "betterment" under state landlord-tenant statutes.
What happens if a tenant completely ruins a 6-year-old carpet?
Because standard rental carpet has a 5-year IRS useful life, a 6-year-old carpet is fully depreciated and has a remaining legal book value of $0.00. Under landlord-tenant law, you cannot deduct any carpet replacement cost from their security deposit, even if it was severely damaged.