Water heater- depreciate or repair

[Michael Bertsch]

I just replace a broken water heater on a SFR that has been in service for about 7 months. Now, I'm getting all my books in order. Would you guys write it off as a repair since it's a small section of the UOP, depreciate, or use bonus depreciation?

[Ashish Acharya]

@Michael Bertsch, Effective for taxable years beginning on or after January 1, 2016, the Internal Revenue Service in Notice 2015-82 increased the de minimis safe harbor threshold from $500 to $2500 per invoice or item for taxpayers without applicable financial statements (generally audited financial statement).