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March 20, 2020
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De minimis Safe Harbor election

  • March 20, 2020
  • 1 reply
  • 15 views

Hi! I understand that the de minimis election is $2500 per invoice or item without an AFS. My question is does this apply to contractor labor? For example say you want to replace some carpet in a rental home...you buy some carpet for $600 at a Home Improvement Store and then you pay a local contractor $500 to install. Do both invoices qualify under the election? Thanks in advance! 

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Best answer by TaxGuyBill

In my opinion, that is still one 'item' that totals $1100.

1 reply

March 20, 2020

In my opinion, that is still one 'item' that totals $1100.