Where in forms section is the "de minimis Safe Harbor Election" and the "Safe Harbor Election for Small Taxpayers?" (Section 1.263(a)-3-(h) and Section 1.263(a)-1(f))?

[tagteam · Accepted solution]

"Where in forms section is the "de minimis Safe Harbor Election" and the "Safe Harbor Election for Small Taxpayers?"

Oddly enough, those election forms are not available as a selection in Forms Mode. Rather, they appear to be auto-generated depending upon the responses to questions in Step-by-Step Mode.

Therefore, you need to start in the Rental Properties and Royalties (Sch E) section in Step-by-Step Mode, proceed through the interview, and then click the Start button to the right of Assets/Depreciation (see first screenshot). One of the first questions will address the De Minimis Safe Harbor Election (see second screenshot) while a later question will address the Safe Harbor Election for Small Taxpayers (see third screenshot)

[cnm-wyle]

The next step is unclear. I made the elections for a Safe Harbor Election and the next step is to enter additional depreciation items. Does it just appear on my Schedule E under Other Expenses?

[tagteam]

" How can I force TurboTax to create the election for Safe Harbor for Small Taxpayers?"

After completing the section in the interview that inquires as to whether you purchased items that cost $2,500 or less, you need to complete the following screens as shown in the screenshots below. The Safe Harbor Election for Small Taxpayers form will be generated automatically.

[joness36]

I remember doing these steps and it would be nice to review my answers to be sure I elected to take SHST. However, it appears that once you answer these questions you can never go back. I wonder if there is even a way to verify the SHST election short of checking for it when the return is completed.

[maps4you]

Even when you follow these three (3) prompts as I did, these de minimis safe harbor items get added to the Asset worksheet (not good) and seem to be treated as Depreciated items (assets) rather than expenses. I was going to treat these items (less than $2500) as straight expenses on the rental property and just "expense" these Other Miscellaneous Expenses at the conclusion of the Rental Expenses thread -- is this ok? I am not a business so I cant use the SCorp method.

[tagteam]

" Does it just appear on my Schedule E under Other Expenses?"

Simply go back to the topic list and click the Start (or Update) button to the right of Expenses (first screenshot).

Proceed all the way through the Step-by-Step until you arrive at the Any Other Expenses screen (second screenshot) and enter the items you elected to expense rather than depreciate.

[shala5]

TurboTax Premier is not asking me whether I want to take the Safe Harbor for Small Taxpayers. I get the DeMinimis election questions, and then it stops. How can I force TurboTax to create the election for Safe Harbor for Small Taxpayers?

[firetiger77]

The "Other Expenses" Section does appear for rental properties, but not for Schedule C Businesses. How can we access the necessary interview or form?

[firetiger77]

After going through the 'Business Assets' interview and selecting that I did purchase items for a business that are $2,500 or less, TT notifies me to "be sure to enter your items as 'other expenses' in the main list of topics for your business"; however, there does not appear to be a place to enter them within the expenses interview.

The 'business expenses' section only includes: Business Vehicle Expense, 'Other Common Expenses', and Home Office Expenses. The 'Other Common Expenses' section does not contain any appropriate categories, nor a way to enter miscellaneous line items.

Where can I enter the actual DeMinimis expenses?

(I've noticed that I do see the 'Other Expenses' interview for rental properties, just not for businesses.)

[psberg0306]

I spent $2300 on new gutters for a rental and should be able to qualify to deduct the entire amount.  I have gone through the Schedule E prompts several times, answered the questions re: qualifying for expensing (yes, I want to expense) and always end up with the gutters placed as an asset with a depreciation allowance of $24.  Where in the world is the "other expense" page?  The only other option is to place it on the "miscellaneous expense" page.

[isamom1982]

Since the 'Depreciation and Amortization' step-by-step function does not work in the 2021 Home & Business desktop application, the De Minimis selection is NOT POSSIBLE to take for TurboTax users.  

You have three choices:

- See if the item can be depreciated at 100% under Special Depreciation rules (federal Job Creation Act...does not apply for all state income tax returns, though)

- Depreciate the item normally (in its class, etc.)

- Use a different tax preparation software to use the simpler and more advantageous de minimis selection.

Very sad state of affairs.

[AliciaP1]

Can you clarify if you cannot get your Depreciation and Amortization to work in TurboTax Home & Business, or are you just posting on an old thread?

@isamom1982

[isamom1982]

This is a current, 2021 TT Home & Business issue since January.  TT is "investigating" (the investigation number INV-19570 will likely not show on this forum but be hidden by the system).

I had to reenter my entire return in Form view, avoiding step-by-step for the software to work.  It works just fine in the online or cheaper "Premium" desktop version.  Only the more complex Home&Business desktop seems to be affected.