I bought additional furniture for a rental. I can either expense it or depreciate. what does "this election will be applied toward all of your rental properties" mean?

[mdramos]

Furniture & other assets bought years earlier are under depreciation. If I expense this new furniture will it affect my furniture already under depreciation?

[MichaelDC · Accepted solution]

"This election will be applied toward all of your rental properties"

This is regarding the De Minimis Safe Harbor Election.

This election for items $2,500 or less is called the De Minimis Safe Harbor Election. This election is an option you can take each year that lets you write off items $2,500 or less as expenses instead of assets. Expenses typically reduce your income by a larger amount than depreciating an asset over multiple years does. This means you could get a bigger refund.

If you decide to take this option, a form called De Minimis Safe Harbor Election will show up in your tax return. This election will apply to all your businesses, rental properties or farms. It's only for those assets placed in service for this year only. It doesn't affect prior assets and depreciation. You can make an election or not next year for those assets placed in service in 2018.

Here are the rules you need to meet to take this election:

• You don't have an applicable financial statement (most people don't).
• You have a consistent process for how you record expenses and assets.
• You record these items as expenses on your books/records.
• The cost of each item as shown on your receipt is $2,500 or less.

[mdramos]

May I suggest that you add the paragraph that starts with "If you decide to take this option...." on the explanation on whether to expense or depreciate an asset? I think it will prevent, or minimize, questions about this issue.

[MichaelDC]

Thanks. Is that a suggestion for internal TurboTax help?