IRS Rules for improvement to rental property

[Buddy Holmes]

I am adding a fence to a rental property which is on a pond.  It is presently rented to an adult couple, but we want to open it up to families with children.  1) Somewhere I read that for Rental property "improvements" that are under $2500 they can be expensed or written off in the year of payment.  I can not find such a rule in the IRS publication.

Also, @Amanda Han, in her informative post on the new tax law seemed to indicate that such purchases after September 27, 2017, could be now fully written off.  I assume in the 2017 tax return for such end year expenses.

Can anyone add to or direct me to info on either of these?

Thanks.

Cheers,

Buddy

[Ashish Acharya]

@Buddy Holmes , 

You are right. The Fence qualifies for bonus depreciation of 100% that is done after 09/27/17. 

However, using de minimis safe harbor-  you can elect to expense everything below 2500- is more beneficial if the total fence expense is below $2,500 rather than electing 100% bonus depreciation. 

Depreciation has to be recaptured later if you sell the house, but safe harbor is an actual expense, not the depreciation.