Updated almost 5 years ago on .
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Clarification on Safe Harbor
Safe Harbor for Small Taxpayers(SHST) has 10,000 limiation. I would like to know whether any deduction I take under De Minimis Safe Harbor(DMSH) counts towards this 10 K limit.
For eg, below are expenses:
Appliance : $2,000
Water Heater: 3,000
Hardwood Floor: 6,000
If I deduct Appliance ($2000) under DMSH, can I deduct remaning 9,000 under SHST? Or should we include applicance cost also for SHST limit, if so I can't deduct SHST since total expense is 11,000, which is greater than 10k limit? If that is the case, then $9000 need to be captialized over 27.5 years?