1) Can de minimis safe harbor be used for renovation-related labor costs under $2500 or tangible items only? I have seen some posts saying to add the labor to the tangible item but unsure if that is correct. For example, we purchased appliances separately, each under $2500. However, we hired someone to install them at a cost of $850. We also incurred a number of other separate renovation-related labor costs under $2500, e.g., plumbing, electrical, etc.
2) If labor costs under $2500 cannot be claimed using de minimis, would I add all of the labor costs (regardless of cost) to the other renovation items (no appliances, flooring or furnishings) costing more than $2500 as one capital asset for 27.5 year depreciation?
3) In TT, to enter the cost of the renovation asset, would I select the following for Depreciation/ Asset?
a) "Rental Real Estate Property" asset
b) "Residential Rental Real Estate" category
c) enter "2023 Renovation" for the item asking to "Describe the residential rental real estate"? Or must it be more specific?
Thank you.
