We have a rental property, which is a single family house. Bought it a few years ago for about $35k, so basis is low. In April 2017, we had to re-tile the whole bathroom floor and some of the wall with ceramic tile, which cost about $1250.

1. Do we have to depreciate this ceramic tile-work over 27.5 years as real property?

2. Or does this qualify for the "de minimus safe harbor election," where we can elect to expense the whole amount in 2017?

3. Does the "de minimus safe harbor election" have a limit of $2500 per item or is that the total max limit per property? (We own 2 properties, and we also bought some appliances in 2017 for both properties).

4. I don't think the ceramic tile-work qualifies for the "safe harbor election for small taxpayers" because of the 2% of basis rule. Our basis is so low, so $1250 spent on tile is over the limit. Am I thinking correctly about this?

Thanks!

Originally posted by @Nancy B. :

We have a rental property, which is a single family house. Bought it a few years ago for about $35k, so basis is low. In April 2017, we had to re-tile the whole bathroom floor and some of the wall with ceramic tile, which cost about $1250.

1. Do we have to depreciate this ceramic tile-work over 27.5 years as real property?

2. Or does this qualify for the "de minimus safe harbor election," where we can elect to expense the whole amount in 2017?

3. Does the "de minimus safe harbor election" have a limit of $2500 per item or is that the total max limit per property? (We own 2 properties, and we also bought some appliances in 2017 for both properties).

4. I don't think the ceramic tile-work qualifies for the "safe harbor election for small taxpayers" because of the 2% of basis rule. Our basis is so low, so $1250 spent on tile is over the limit. Am I thinking correctly about this?

Thanks!

1. No, because...

2. ...it does qualify for the de minimus exception

3. It is per item, no overall max

4. Correct, but it doesn't matter, since you have de minimus

Now, if we get careful with the rules, de minimus requires a policy in advance and books consistently following this policy. When you don't have real books to speak of, it gets murky.

Thank you!