Thank you both so much for taking the time to clarify so much for me.
I think the de minimis safe harbor election is my best bet this year. And I assume I should select it for each schedule E that I complete for each different property that I own, even though I really only need to use it for this one. Will I still depreciate my vehicle expenses, or will those also then be considered regular expenses (under $2500) ?
The $200 rule I mentioned came from the IRS website:
"What is included in the definition of materials and supplies?
Materials and supplies are tangible, non-inventory property used and consumed in your operations including:
- Acquired components – Costs of components acquired to maintain, repair, or improve tangible property owned, leased, or serviced by you and that's not acquired as part of a larger item of tangible property; or
- Consumables – Costs of fuel, lubricants, water, and similar items that are reasonably expected to be consumed in 12 months or less, beginning when used in operations; or
- 12 month property – Costs of tangible property that has an economic useful life of 12 months or less, beginning when the property is used or consumed in your operations; or
- $200 property – Costs of tangible property that has an acquisition cost or production cost of $200 or less.
The property need only fit into one of the above categories to qualify as a material or supply."
