I have a multiple rental properties, and if I purchase a battery power drill ($50) and use it to repair and maintain multiple rental properties, is this drill an expense or should a depreciate it over multiple years? Does the de minimis safe harbor applies to this situation?
And since I used it on multiple properties, what should I do about it?
Since I do a lot of repair myself I purchased a lot of tools, such as screwdriver, multimeter, lawn mower, saw, etc each cost less than $2,500.
You'll need to sign in or create an account to connect with an expert.
You can expense (deduct in their entirety) such low-cost items provided they are used 100% for use in your rentals.
See https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations
Generally, materials and supplies, etc., costing $200 or less (formerly $100), could always be expensed as an administrative convenience if used for business purposes.
You can expense (deduct in their entirety) such low-cost items provided they are used 100% for use in your rentals.
Thank you @tagteam. It is great that I can expense it. Is it because of the de minimis safe harbor election?
Thanks!
See https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations
Generally, materials and supplies, etc., costing $200 or less (formerly $100), could always be expensed as an administrative convenience if used for business purposes.
Awesome. Thank you so much!
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
dlarzik
Level 1
Sandy55
New Member
baut484528
New Member
J3SS1CA
New Member
frank1618
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.