@DianeW777 Thank you for your reply. I do not qualify for the DMSH for Small Taxpayers so I will be keeping the discussion to just DMSH. If I am understanding correctly, the only part of my remodel (improvement) that I can claim under the DMSH election would be the new appliances (personal property). All of the items that one typically thinks of for a remodel, like sinks, tubs, vanities, tiles, flooring, cabinet hardware, plumbing fixtures, light fixtures, etc will need to be capitalized anddepreciated along with the labor cost?
I read on a CPA websites where they used this example for applying the DMSH:
For example, a taxpayer replaces 100 windows in a property that has 150 windows at a cost of $2,000/window. This taxpayer, applying the facts and circumstances and considering the unit of property, has replaced a significant portion (100/150 or 66%) of the windows and would generally be required to capitalize the costs. If the taxpayer elected the de minimis safe harbor, it could deduct 200,000 immediately (100 x $2,000) and not have to capitalize the costs.
I have also read very similar comments on other blogs and websites written by CPA's. (i try to make sure it is someone who should know tax law) This seems to directly conflict the information you provided for the DMSH election because to me windows are not personal property, they are an improvement. But they seem to be saying you can elect DMSH in their example.
This is why I am so confused at this point. It seems to me some are interpreting the election one and others another way.
