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"We do not depreciate carpet or appliances because in the sense of real dollars the write-off is nominal." Nominal!!! You really haven't a clue. Between the depreciation, the repairs, and other deductions, I write off nearly all of my rental income. Last year I made many tens of thousands of dollars in rental profit, but I am paying tax on just a couple thousand because of these deductions! (Improvements made at strategic times can be made to help your tax situation.) Open a home office and with those added deductions you can show a negative income and pay no tax on this money. (Of course I do have to show a profit every few years for the IRS.) I suggest an appointment with a tax accountant. You are paying taxes on things you don't need to. And yes, the carpet can be devalued simply because of its age. If a tenant ever takes you to court and shows that you are attempting to charge them for 15 year old carpet or to charge them a disproportionate value, the judge may rule that you are acting in bad faith and fine you up to 3 x the damages withheld.
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