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De minimis Safe Harbor election

Anonymous
Not applicable

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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Accepted Solutions
TaxGuyBill
Level 15

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

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1 Comment 1
TaxGuyBill
Level 15

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