Why does Turbotax not apply TPR De Minimis Safe Habor to my rental property?

[manbeing]

I installed a $2300 roof on the rental property in 2018. When I entered this investment in rental property section, turbotax doesn’t ask me if I want to expense it but just asked me how I want to capitalize/depreciate it?

[Coleen3 · Accepted solution]

The De Minimus Election applies to non real property.  The elections apply to the assets you would normally depreciate, like carpeting, appliances, etc. You can take the Improvments Election.

Improvements Election

This election is an option you can take each year that lets you write off some building improvements as expenses instead of assets. 

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

• Your gross receipts, including all your other income, are $10,000,000 or less.
• Your eligible building has an unadjusted basis of $1,000,000 or less.
• The cost of all repairs, maintenance and improvements is less than or equal to the smallest of these limits: 

• 2% of the unadjusted basis of your building or
• $10,000

This election for building improvements is called the Safe Harbor Election for Small Taxpayers. If you decide to take this option, a form called Safe Harbor Election for Small Taxpayers will show up in your tax return. This election will apply to all your businesses, rental properties or farms.

To make either of the elections please follow these steps:

Part 1.  Make the election

1. Click on Federal Taxes > Wages & Income [In TT Home & Biz:  Business > Continue > I'll choose what to work on]
2. In the Rental Properties and Royalties section, click the Start/Update button.  
3. If you have already started adding information about your business, you will be asked if you want to review your rental and royalty information.  Click the Yes box. 
4. When you come to the Rental and Royalty Summary screen.  Click on the Edit box next to the property.   
5. If you haven't already started adding information about the property, continue through the screens to enter the needed information.
6. You will now be on the Review Your [property name] Rental Summary screen.  
7. In the Assets/Depreciation section, click on the Start/Update box.
8. When you come to the screen, Did you buy any items that each cost $2,500 or less in 2018? mark the Yesbutton and click Continue.  
9. On the screen Let's see if you qualify to deduct these items as expenses, mark both of the Yes buttons and click Continue.  
10. On the Now, let's review each item you bought screen, mark whether all your new assets cost $2500 or less.  
11. If you mark that every item cost $2,500 or less, you will be brought to the Rental Summary screen.  You have elected the De Minimis Safe Harbor provision.  Proceed with Step 2, below.
12. If you mark that some cost above $2,500, you will be asked Did you make improvements to rental in 2018?

• If you say Yes, you will be taken through the screens for the Improvements election.
• If you say No, you will see the screen Do you have any items that aren't covered by your elections?  Proceed through the screens to enter these assets.