using De Minimis election for tangible property what are the invoice requirements

[fvhelms]

I want to elect the de minimis for various expenses related to equipment and production of youtube content and ebay.  I have turned a profit and wanted to make use of the de minimis election.  I am a sole proprietor.  My main concern is the "invoice" requirement.  I have receipts for all purchases, and invoices from various locations.  Is that all I need, or do I need to actually have a separate invoice made? 

Thank you for your help

[Anonymous_ · Accepted solution]

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@fvhelms wrote:

I have receipts for all purchases, and invoices from various locations.  Is that all I need....

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That is essentially all you need; it is per invoice or per item as substantiated by the invoice.

See Treas. Reg.  §1.263(a)-1(f)(1)(ii)(D)

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

[fvhelms]

So I purchased a printer for my ebay business....I have the receipt, but I purchased it along with groceries and other items.  The printer is about $100.  Is that receipt valid even though it includes other non-business items.   I obviously cant deduct eggs and ground beef that are on the receipt, so I assume I just itemize or highlight?

Do i need to attach all receipts to my return? Or just keep them in my records?

[Anonymous_]

Just keep the receipts for your records; do not attach the receipts to your return.

It is per invoice (or per item as substantiated by the invoice) so your receipt is fine; retain the receipt and even highlight the printer for easy identification if you like.

[fvhelms]

last question I promise.  I have seen some articles that claim the $2500 limit is per item...some say per invoice....It does not impact me as my deduction will be lower than 2500, but if i bought a new camera for 700, a new computer for 1000 and a new desk for 1000 would I be able to deduct all those items if they are on seperate invoices?  Even though the total is over 2500?

[Anonymous_]

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@fvhelms wrote:

.....i bought a new camera for 700, a new computer for 1000 and a new desk for 1000 would I be able to deduct all those items if they are on seperate invoices? 

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Yes, per the IRS:

The de minimis safe harbor is simply an administrative convenience that generally allows you to elect to deduct small-dollar expenditures for the acquisition or production of property that otherwise must be capitalized under the general rules.

Do not forget that you need to make the election on your return, although TurboTax supports making the election:

How do you elect to use the de minimis safe harbor?

You should attach a statement titled "Section 1.263(a)-1(f) de minimis safe harbor election" to the timely filed original federal tax return including extensions for the taxable year in which the de minimis amounts are paid.

[forinterest]

What about an invoice that has

furnace:  3000

thermostat: 10

Thermostat discount: -100

Base Cabinet: 400

install discount:  -400

install discount: -100

Can I apply those discounts directly to the furnace so that I can expense the furnace?

So I can expense 

furnace: 2500

thermostat: 100

base cabinet:400

[forinterest]

that top part of the previous question was supposed to say "Thermostat: 100"  not "Thermostat:10"