@Anonymous_ wrote:
The ($2,500/$5,000) de minimis safe harbor is not limited to small business.
The final tangibles regulations apply to anyone who pays or incurs amounts to acquire, produce, or improve tangible real or personal property. These regulations apply to corporations, S corporations, partnerships, LLCs, and individuals filing a Form 1040 or 1040-SR with Schedule C, E, or F.
There are two different safe harbors that sometimes get confused. The safe harbor for small taxpayers (SHST; IRS Reg. §1.263(a)-3h) can be used for buildings with an adjusted cost basis of $1M or less, so that at least puts some limits on the ability of big landlords to use the safe harbor. This safe harbor allows deduction of improvements costing less than 2% of the building's cost basis. And "small taxpayer" is in the name...
