As I understand it, the IRS allows you to deduct any capital expenses under $2,500 under the de minimis safe harbor election (reference Three Safe Harbors all Landlords and Real Estate Investors Should Know About). However I’m not quite sure how to categorize these expenses within Stessa.
Ideally, stessa would have some sort of category called “Capital Expense within deduction limitation” that would expense the transaction as opposed to capitalizing it for depreciation.
For example, I bought a couch that is $2,000. The only way I can make it show up as an expense is to categorize it as something other than “capital expense”. There are no categories that really fit so i’m forced to put it under a repairs & maintenance or some similar type of expense category. That’s where a “capital expense within deduction limitation” category would come in nicely.
Has anyone found a better way to do this? Would anyone else find this new category useful?