Thank you for your response. So I’m clear about my next steps and before I move on to post my expenses I’d like your advice on the following:
- Elected the De Minimis and the Special Depreciation allowance in TT for my rental property 2023 expenses
- In 2023 I spent $2000 on new garage door, $5,094 on new carpet and $13,900 on new kitchen cabinets as well as other smaller assets/expenses totaling $30K
- I entered these three as Added Assets and was expecting 100% deduction for the garage door (<$2500 DeMinimis) and 80% deduction for the carpet and cabinets under the Special Depreciation allowance
- Instead, TT ignored the De Minimis option, reduced the deduction to 80% on all three assets and posted it as depreciation in line 18 on Schedule E as well as in the Depreciation Report as Special Depreciation Allowance
- Entering the garage door as expense in Line 19 on Schedule E (Other) and the carpet/cabinets as assets TT posted 100% deduction for the garage door and 80% for the carpet/cabinets as hoped Questions:
My questions are:
- Are my two entries in 5 above correct? Specifically entering the door in line 19 on Schedule E?
- If so, should I list the other sub $2,500 expenses (I have some 20 of them) in Other (line 19) item by item as they appear on the invoice or is there a way to consolidate?
Thank you,
