Is the deminimis election subject to 2% of the property value like the safe harbor for small taxpayers or any other limits? Are total repairs and maintenance limited if you apply the election?
For example, building cost $200,000, 2% = $4,000
my deminimis limit is $2,500 (non-audited financial stmts)
Example 1:
cabinets $2,000
flooring in one unit 2,000
flooring in another unit 2,000
3 appliances $2,000
Can I deduct $8,000?
Example 2:
I have 20 units and spend:
-$5,000 on one unit that did improve/restore it (labor $2,000 invoices $3,000 - each under 2,500)
-$2,000 on all the other units = $38,000.
I could deduct all $43,000?
I just need to have a consistent policy to expense these items?
Thank you.
