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Updated almost 5 years ago,

Account Closed
  • Rental Property Investor
  • Austin, TX
176
Votes |
280
Posts

$2,500 De Minimis Safe Harbor Election - per project or total?

Account Closed
  • Rental Property Investor
  • Austin, TX
Posted

Hi everyone, I closed on a property last week, listed it for rent the day of closing, and am performing some minor changes before it is rented. Based on my understanding of @Brandon Hall BARRRR stategy,  since the property was made available ('For Rent' sign in yard - and yes, i got a time stamped photo) and ready (it is move-in ready), most of the changes I am making can be expensed instead of capitalized. However, I started thinking and realized that - per my understanding of de minimis safe harbor - most of my projects under the $2,500 cap would be expense-able ANYWAYS! For example:

$1,000 - Paint Kitchen and Bath Cabinets

$500 - Refinish the Bathtub and Tile Surround

$1,000 - A/C Maintenance and cleaning

$1,650 - Replace breaker box and run grounds to Kitchen/Bath for GFCIs

Here is the primary question: Does de minimis safe harbor apply to each project (making all of this expenseable) or is it the sum of applicable projects UP TO a $2,500 max?

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