Expense a dishwasher and microwave for a rental property?

[narendran-kandas]

Greetings,

I read the quoted sentences in a different post- "for qualifying assets that cost less than $5000 you have the choice to either capitalize and depreciate, or to just deduct the full cost as an expense in the year of purchase. Appliances that cost less than $5000 qualify to be expensed".  and "When working through the rental expenses section, the very, very, very *VERY* last screen of that section is for miscellaneous expenses not covered in other expense categories. Just enter your appliances there and the cost, click Continue and press on."

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-i-purchased-a-new-...

I am using Turbo Tax Business (Desktop version) because the rental property is in a LLC. 

I would like to claim the appliance as an expense.  

My question is..

1. Because there is no miscellaneous expense entry in this  product, can I enter this in the general expense section where I am allowed to manually type the expense title?
2. I also purchased a 5 year warranty plan for the appliance, where do I enter this expense?
3. There was installation charges for the both the appliance where should I enter this expense?

TIA.

[PatriciaV · Accepted solution]

Yes, if the appliances you purchased cost less than $2,500 each, you may report the cost as a general business expense. Total cost would include tax, delivery, and installation. The extended warranty is related to the appliance, so include that in the total cost.

To make the Safe Harbor Election in TurboTax Business, open your return and click on the "Other" tab under Federal Taxes (at the end). Continue through the questions until you see Tax Elections. Click Yes, then check the box for "Election for the De Minimis Safe Harbor." In this way, a special election statement is added to your return, as required by the IRS.

Note that you are limited to expensing $2,500 per asset because you don't file financial statements with the SEC.