Hello James,
Thank you for your response. I might need some clarification that is related to my previous question. To deduct an item as an expense in the same year under $2,500 I can use the De Minimis Safe Harbor Election. And to deduct items in the same year that are over $2,500 I can use the Safe Harbor Election for Small Taxpayer.
The Safe Harbor Election for Small Taxpayers allows me to deduct items or Improvements (such as, repairs, maintenance and improvements) that are over $2,500.
Why does the election allow me to expense items or improvements over $2,500 using the Safe Harbor Election for Small Taxpayers but cannot expense Improvements that are under $2,500?
Ex. If I installed a new fence (Improvement) that cost over $2,500 and I had separate receipts for the material and labor work to build the new fence I can expense the total cost of the fence using the Safe Harbor Election for Small Taxpayers, however, if the fence cost under $2,500 (Improvement) does not allow me to expense it because the De Minimis Safe Harbor Election is used to expense an Item only.
