Section 1.263(a)-1(f) De Minimis Safe Harbor Election" for 1120S

[sscorp]

My understanding - with "Section 1.263(a)-1(f) De Minimis Safe Harbor Election" for 1120S filing using turbotax business desktop, purchases less than $2500 should not be entered under asset depreciation. Instead those should be listed under "Other deductions statement" which would be rolled up to line 19 on 1120S. Is this correct way to enter it? When I enter it under assets section, there is no message/informing that this can be entered as "other deductions". Turbotax premier home and business for 1040, provides such information/guidance and I entered it as "other expenses" for schedule C. therefore would like to confirm the same for 1120S filing that these less than $2500 asset prucahses can be claimed under "other expenses" 

[tagteam · Accepted solution]

For some odd reason, you need to make this election with TurboTax Business in Forms Mode (click the Forms icon in the upper right side of the screen).

Click the Open Form icon, expand the list of forms, scroll down, select S Corporation Elections Summary, and open that form. Place a couple of "X's" on Line 11 (the 1.263(a)-1(f) election), click inside the box to reveal the magnifying glass icon and then click the magnifying glass icon. Place a checkmark in the box on the Section 1.263-1(f) election form to make the election.

[sscorp]

Election can be made under Federal Taxes->Other tab. and I have already made the election. So my question is not related to how to make this election. Once this election is made, turbo tax business still lets me enter assets less than $2500 under depreciation section instead of guiding me to enter under other deductions. So am I right in assuming that - once this election has been made, I should skip asset depreciation section and instead enter those small asset pruchases under other deductions/expense?

[tagteam]

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@sscorp wrote:

So am I right in assuming that - once this election has been made, I should skip asset depreciation section and instead enter those small asset pruchases under other deductions/expense?

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Yes, your assumption is correct; skip asset depreciation and enter the purchases as expenses.