De Minimis Safe harbor Deduction Requirement: Record Tangible items <= $2,500 as expenses on your corporate books/records.

[scarp1]

It looks like an S-corporation has to expense tangible items <= $2,500 on their corporate books (not talking about tax books) in order to qualify for the De Minimis Safe Harbor deduction. This has to be done for the whole tax-year I think. Would recording a $2,000 item in the Corp Books as an asset (capitalize) and then immediately the same day 100% expensing the whole amount to an expense type account, qualify per De Minimis rules?  I think on the gen ledger for a computer it looks like:

• Day 1, Db Asset-Equipment Acct +$2000
• Day 1, Cr Checking Acct +$2,000
• Day 1, Cr Asset-Computers Acct -$2,000
• Day 1, Db Expense-Computers Acct -$2,000

It appears to me like it is still expensed on the books.  Is it, and does it meet the IRS De Minimis Safe Harbor rule of requiring the corporate books to expense these purchases?

Before someone points out that this is not the best way to do the books for meeting the De Minimis requirement, please  note that for 2026 I just expense theses <= $2500 tangible items from the get go and never put them in an asset account.

Thanks.

[AmeliesUncle]

Why would it be entered as an asset at all, if it is then backed out an an immediate expense?

As a side note, despite what most people say, it is NOT an automatic $2500 for the De Minimis.  The business has to have accounting procedures to deduct a "specified dollar amount" and treat items under that as an expense.  For example, if the business set $1500 as their "specified dollar amount" for expensing, then the De Minimis Election would not cover items over $1500.

[scarp1]

Thanks for not answering the question, and yet still taking the time for a backhanded slap. You sure seem verrrryyyy important. Use your imagination, and think of ….

[Mike9241]

this is what the IRS says

If you don't have an AFS, you are not required to have written accounting procedures; however, you must expense amounts on your books and records for the taxable year in accordance with a consistent accounting procedure or policy existing at the beginning of the taxable year. 

https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#Ad... 

[scarp1]

Thank you.