Laminate floor in rental property. Safe Harbor election.

[GJ58]

I put a new luminate floor in one of my rental properties. I would like to expense as much as possible. Total cost is. $7987. My approach is: I'll make a Safe Harbor Election Sec 1.263. Expense $3440, which is 2% of the basis of the house without land cost. And the rest depreciate  over 27.5 years. Can I do it?

[tagteam]

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@GJ58 wrote:

Can I do it?

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Nope. The "lesser of 2% or $10,000" language refers to the total amount paid during the taxable year for repairs, maintenance, improvements and similar activities.

Your total cost was $7,987 which, according to your figures, exceeds 2% of the basis. As a result, you cannot make the Section 1.263(a)-(3)(h) election (for small taxpayers).