What is the de minimis safe harbor election?
Under the final tangibles regulations, you may elect to apply a de minimis safe harbor to amounts paid to acquire or produce tangible property to the extent such amounts are deducted by you for financial accounting purposes or in keeping your books and records.
https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations
这个定义不限于地产生意，任何生意都可以用。所以开饭馆的买一个烤箱也可以用。如果在place in service date（PISD）以前不能用DMSH，那么饭馆需要在开张以后才能减买烤箱的钱？这个不对头啊，买烤箱的时间应该和DMSH无关。
我认为place in service date 是算capital cost的关键，但是capital cost里面有很多项，只有tangible property能够用DMHS。
比如，我买了房装修完出租，房子本身50万，装修中，人工5万，材料5万，另外装修期间的利息地税保险费等等一万。总共capital cost是61万。这里面，只有材料5万可以用DMHS（假设每份材料不超过5千元），可以当年做费用去掉，和place in service以后装修材料一样。
|
|
Paid Before placed in service date |
Paid After palaced in service date |
|
Purchase Price |
Capital |
Capital |
|
Interest expense |
Capital |
Expense |
|
Insurance |
Capital |
Expense |
|
Improvement - Labor |
Capital |
Capital |
|
Improvement – Material (or Tangible Property) |
Capital but Can use DMHS |
Capital but Can use DMHS |
|
Advertising and Commission |
Not sure, I’d expense |
Expense. |
