I don't understand this De Minimis Safe Harbor Election. I believe I qualify but where do I enter the expenses?

[DamienO · Accepted solution]

First go to the assets section of the TurboTax 'Home & Business' product to see if you qualify to take the election. If you qualify, then go to the expenses section and enter the item there. Essentially, qualifying for the 'De Minimis Safe Harbor Election' means your item can be entered as an expense and not an asset. This usually means that you get a greater tax benefit.

Additional note: Please enter those elections in the 'other miscellaneous expenses' category under the 'other common business expenses' section.

[jim-hofmann]

Yes, I understand that but where in the "EXPENSES" section do you enter it?  Do you enter it under the "supply" expenses?  In my case, these are percussion instruments for my side business as a percussionist - so not exactly supplies but also not 'assets' since they qualify for De Minimis SH.

[DamienO]

You should enter them under 'other' expenses. This may sound counterintuitive but 'other' is the correct place for all these elections.

[jim-hofmann]

Thanks!

[davidmschrader]

damotest1: By "Other" expenses, I'm guessing you actually mean the section "Other Misc. Expenses?"

[DamienO]

Correct

[user35270]

Perhaps when giving the initial advice and in the internal product help, the EXACT same language should be used as in the product itself. After all, doing so is very much under the aegis of user interface  best practices.

[rich-qba]

This was very helpfully..  Turbotax is not very intitative here.  It asks you if you have any expenses that might qualify for this exception then takes you to a form that asks you to list the property(not what you are expensing) . It then takes you to the page to add assets for deprecation.   .

[erik-qw]

Do the expenses need to be listed individually? Do we need to type every item that is being expensed or do we just need a summary group?

[tonimuscarella]

Terrible explanation on this topic.  Yes exact language should be used as in the product itself.  Also the form it says it will create is not created if you enter these items under Other Misc expense.  Something is wrong with these portion of the program!!  There is NO section "Other business expenses"!!

[user8507]

Any update here?

Where do we enter these expenses?

I figured out I do qualify for this "De Minimis Safe Harbor Election" but as others have said you have specified language that does not exist in the rental expenses category.

Please help.

Thanks.

[Norton1]

Also see the article, What can I expense or depreciate with the new business 2014 safe harbor election?

https://ttlc.intuit.com/questions/2843048

[A83Mxyz]

I have a sub-question that I'm hoping someone can please answer for me.  If I'm taking the safe harbor election, should I delete the new fence from the Asset section of my rental property? (so that it only appears in the miscellaneous expense section)?  I worry about double-dipping (depreciating the fence AND treating it as an expense).  Thank you!

[PatriciaV]

@A83Mxyz

Yes, you are correct. The cost of the asset should be reported as a business expense under the Safe Harbor Election. Do not report this as an Asset for Depreciation as well. One entry only.