Submitted By: someone
Answered: July 22, 2018 10:59 pm

I own rental property and have made some expenditures. Can I use a safe harbor for an immediate deduction?

Instead of depreciating certain expenditures, you may be able to use an IRS-created de minimis safe harbor to deduct these costs (up to $2,500 per item or invoice). You can find more about the safe harbor from the IRS at https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations. Also keep in mind that in 2018, you can use 100% bonus depreciation to write off the full cost of equipment and machinery as well as certain capital improvements to commercial realty.

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Tax Glossary

Net operating loss

A business loss that exceeds current income may be carried back against income of prior years and carried forward as a deduction from future income until eliminated.

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