@tagteam wrote:
@Opus 17 wrote:
@michash2998 wrote:
can I amend 2019 tax return to remove the water heater as depreciable asset and enter it as expense instead?
And then amend each subsequent year accordingly?
I think is going to be a no, because you changed your mind after more than 2 years, but I am open to alternative interpretations.
I agree with @Opus 17 that it would be a "no".
The de minimis safe harbor requires that a statement be attached to a timely filed original federal tax return including extensions for the taxable year in which the de minimis amounts are paid.
See https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations
However, it remains the case that @michash2998 does not need to amend and does not need form 3115. Just prepare and file your return according to the usual rules. You just have a slight loss on the unfavorable treatment of the hot water heater. (You probably lost about $200 by depreciating it instead of expensing it. Not the worst mistake you could have made.)
