Hi. I am electing the de minimis safe harbor election to deduct expenditures up to $2,500 per invoice for my multi-member LLC (Form 1065). I do not have audited financial statements. I found in 2020 TurboTax Business the box to check to create the attachment for the election. However, I did not find any question by TurboTax about expenses under $2,500 in the depreciation section.
I purchased a complex with 20 units and I am repair/remodeling a few units. The others will be done if necessary as they become vacant in 2021. I spent the following:
-Unit 1 $2,405 ($1,705 materials on several invoices and $700 in labor)
-Unit 2 $3,209 ($1,584 materials on several invoices, $625 on 3 appliances, and $1,000 in labor) Splitting the unit into 2 units
Total $5,614
1) Did 2020 TT Business change and eliminate the $2,500 question or was that for Schedule E?
2) Do I need to break-out /report the amount of the election in TT on any schedule other than Form 8825, Line 10?
3) Are there any aggregate limits for the de minimis safe harbor? What is the max that could be deducted this year or future years? Any unit expenditures under $2,500 regardless if I did 6 of them? An aggregate of $2,500 on appliances or anything limits like that? Each invoice? Each Unit?
4) Can any of the expenditures on unit 2 be deducted as de minimis or only unit 1?
5) Do I have to elect the de minimis safe harbor election each year or only the first year?
Thanks for your help.
