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jasoncave71
New Member

How do i report miscellaneous expenses under 2500 on rental property? turbo tax keeps defaulting me to report as an asset not an expense?

the q and a on the side says to hit continue and then hit miscalleneous expenses but when i do it it defaults to assets 

1 Best answer

Accepted Solutions
HelenaC
New Member

How do i report miscellaneous expenses under 2500 on rental property? turbo tax keeps defaulting me to report as an asset not an expense?

From your question, it appears you are trying to take the Safe Harbor Election. It also looks like you did the first step below. You now have to do the second step below.

When items are purchased for a business, a decision is made whether it’s an expense that you deduct all of the cost now, or you deduct the cost over multiple years (depreciation).

  • If the miscellaneous assets (expenses) cost less than $2,500 you might be able to expense them as an Other Miscellaneous Expenses.

How do I do this with TurboTax?  This is a two-step process:
The first step:

  1. Go to the Assets / Depreciation area. The first screen will ask: Did you buy any items that each cost $2,500 or less in 2018? It’s asking about any items that you haven’t entered yet as expenses.
  2. If you say Yes, here’s the next screen:
  3. We ask a couple of questions and if you say Yes they both apply to you, we ask if you want to take the election to expense items costing $2,500 or less. If you say Yes to that question, TurboTax will add the De Minimis Safe Harbor Election form to your tax return.

The second step:

  1. Go to the Your Business screen.
  2. Enter the amounts you want to expense in the Business Expenses area, Other Miscellaneous Expenses.

Related information:

 

View solution in original post

1 Reply
HelenaC
New Member

How do i report miscellaneous expenses under 2500 on rental property? turbo tax keeps defaulting me to report as an asset not an expense?

From your question, it appears you are trying to take the Safe Harbor Election. It also looks like you did the first step below. You now have to do the second step below.

When items are purchased for a business, a decision is made whether it’s an expense that you deduct all of the cost now, or you deduct the cost over multiple years (depreciation).

  • If the miscellaneous assets (expenses) cost less than $2,500 you might be able to expense them as an Other Miscellaneous Expenses.

How do I do this with TurboTax?  This is a two-step process:
The first step:

  1. Go to the Assets / Depreciation area. The first screen will ask: Did you buy any items that each cost $2,500 or less in 2018? It’s asking about any items that you haven’t entered yet as expenses.
  2. If you say Yes, here’s the next screen:
  3. We ask a couple of questions and if you say Yes they both apply to you, we ask if you want to take the election to expense items costing $2,500 or less. If you say Yes to that question, TurboTax will add the De Minimis Safe Harbor Election form to your tax return.

The second step:

  1. Go to the Your Business screen.
  2. Enter the amounts you want to expense in the Business Expenses area, Other Miscellaneous Expenses.

Related information:

 

View solution in original post

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