@ColoRock wrote:
Thanks so much! I agree, probably can’t separate the concrete job into its parts, so as a land improvement will instead depreciate over 15 years or I can use bonus depreciation.
But it sounds like you are saying, even if the concrete job was under $2500 it wouldn’t qualify for de minimus safe harbor because it’s not personal property?
My NOLO book says it’s a land improvement, which is classified as real property. And it says de minimis applies to tangible property, which is personal property and real property. And direct quote from IRS “Under the final tangibles regulations, you may elect to apply a de minimis safe harbor to amounts paid to acquire or produce tangible property”.
I ask because I made another land improvement this year ($800 fence) that I thought was a slam dunk for de minimis!
Thoughts?
I'm having a hard time finding a clear definition, if you have a book that says that real property is included in tangible property, you might just go with that.
Intangible property is one thing (like patents and copyrights), and real property is something else, and tangible personal property is yet something different, under different IRS regulations. I'm having a hard time finding a clear statement that real property is included as a sub-class of tangible property. (In other words, that the term tangible property includes both tangible personal property and real property as two different types.). The closest I can come is paragraph (b)(3) here,
https://www.law.cornell.edu/cfr/text/26/1.263(a)-2
so I would probably be happy to rely on a book written by professional experts who should know what they are talking about.
