All Forum Posts by: Nancy B.

Thank you!

Single family rental property was bought a few years ago for $42,000.

In 2018, furnace and air conditioner were replaced at the same time. They were listed as separate line items.

The air conditioner was about $2700. The furnace was about $2300.

Can I expense the furnace under the de minimus safe harbor election (because it was less than $2500), and then capitalize the air conditioner (because it was more than $2500)?

Thank you!

We have a rental property, which is a single family house. Bought it a few years ago for about $35k, so basis is low. In April 2017, we had to re-tile the whole bathroom floor and some of the wall with ceramic tile, which cost about $1250.

1. Do we have to depreciate this ceramic tile-work over 27.5 years as real property?

2. Or does this qualify for the "de minimus safe harbor election," where we can elect to expense the whole amount in 2017?

3. Does the "de minimus safe harbor election" have a limit of $2500 per item or is that the total max limit per property? (We own 2 properties, and we also bought some appliances in 2017 for both properties).

4. I don't think the ceramic tile-work qualifies for the "safe harbor election for small taxpayers" because of the 2% of basis rule. Our basis is so low, so $1250 spent on tile is over the limit. Am I thinking correctly about this?

Thanks!