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Not applicable
posted Jan 24, 2020 7:30:30 PM

Is a refurbished computer considered new for the purposes of a De Minimus Safe Harbor election?

When entering information for a computer I'd like to depreciate under the De Minimis Safe Harbor election I am asked if the asset was purchased new. I purchased this computer directly from the manufacturer in refurbished condition. Is it considered new in this case?

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1 Best answer
Expert Alumni
Jan 24, 2020 7:47:40 PM

It really depends on the seller's definition of "refurbished". The meaning of that word can vary from seller to seller. If it was just an "open box" (but not used) refurbished computer or a refurbished display model that was never sold to a customer, then I would consider it new. However, if it was actually used by a consumer and later returned to the store and refurbished by the seller, then I would not consider it new. The seller's website may have some more information on this.

1 Replies
Expert Alumni
Jan 24, 2020 7:47:40 PM

It really depends on the seller's definition of "refurbished". The meaning of that word can vary from seller to seller. If it was just an "open box" (but not used) refurbished computer or a refurbished display model that was never sold to a customer, then I would consider it new. However, if it was actually used by a consumer and later returned to the store and refurbished by the seller, then I would not consider it new. The seller's website may have some more information on this.