I am a landlord with 8 units and I am interesting in taking the DMSH for some of my normally depreciable items... I have read extensively on the subject and felt good about the criteria and guidelines and understood everything fairly well until I started reading everyone's opinion on the subject here in the TT threads. One issue I am not understanding is why in the threads here about DMSH many say you can't take the election with improvements. I do not see that when I read the IRS information about the election. I dont think the word improvements is even used under the topic. And then it is said that you should use the Safe Harbor Election for Small Taxpayers for improvements which I agree with but I don't qualify for that election so that is a no go for me. I did an extensive remodel on 3 units (over 100K) and will also have significant depreciation items that are over the $2500 limit. So what are examples that are a big no-no to take under the election that would be related to a remodel? What I am looking at for the election is the supplies i used for the improvements.... those are the low dollar receipts and there are many!! Some examples would be tiles, faucets, bathroom vanities, lighting, window treatments, bathtubs, sinks, appliances.. anything you can think of that would go with a total remodel. The labor for the improvements will be depreciated as it is near 80k and things like granite countertops, HVAC,...............
Any polite/constructive comment or discussion on the above would be greatly appreciated and welcomed!
Thanks
