Investors & landlords

Actually, since it is an electric panel, even though the result is the same, the electric panel would qualify under the Safe Harbor Election for Small Taxpayers, not the De Minimis Election.

To do this in TurboTax,

• for a Schedule E under Rental Properties and Royalties (Sch E), or
• for a Schedule C under Self-employment income & expenses,

under the expenses section, select Assets and follow these steps:

1. If you already have an asset, select Edit next to Improvements, furnishings, and other assets.
2. At Your improvements, furnishings, and other assets select Add Asset.
3. At Do you want to go directly to your asset summary? select No.
4. At Did you buy any items for any business, rental property and/or farm that cost $2,500 or less in 2020? select Yes. (This concerns the De Minimis Election)
5. At Let's see if you can deduct these items as expenses, answer the questions as listed and Continue.
6. Answer the questions according to your circumstances. At Did you make improvements to a building you used for this business in 2020?, select Yes and Continue.
7. At Let's see if you can claim these improvements as expenses answer the questions and Continue. (This concerns the Safe Harbor Election)

Now, report the Electric Panel asset and its details.

• At Describe the building you made improvements to enter your property address.
• At Do you have any items for this business that aren't covered by your elections? Answer Yes and Continue.
• At Describe This Asset, select Real Estate Property and enter the date purchased and Continue.
• At Tell Us a Little More About Your Business Asset, select Qualified Improvement Property and Continue.
• At Tell Us About This Asset / Large Purchase describe the qualified improvement property as Electric Panels, enter the Cost and Continue.
• At Tell Us More About This Asset / Large Purchase, identify whether the panels were bought used or new, whether they are used 100% for the business, the date of purchase and Continue.
• At How Do You Want to Deduct this Item? select your preference and Continue. This is where you can elect to take 100% of the expense as special bonus or as Section 179. If your business is reporting a profit, this will deduct 100% of the expense and the election will allow it.

[Edited 03/02/2021 | 5:20 AM PST]

@Prethen