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cseeman
New Member

Would following be Miscellaneous Deduction or 179 Asset Deduction: Photographer buys $2800 camera body, $800 lens, $200 tripod? I've heard of $200 and $500 or arbitrary.

 
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Coleen3
Intuit Alumni

Would following be Miscellaneous Deduction or 179 Asset Deduction: Photographer buys $2800 camera body, $800 lens, $200 tripod? I've heard of $200 and $500 or arbitrary.

Assets generally must be depreciated. Section 179 is a way of taking the entire amount or any portion of the amount in the year the asset is placed in service.

You may also expense by using the De Minimus Safe Harbor election.

De Minimis Safe Harbor Election

This election for items $2,500 or less is called the De Minimis Safe Harbor Election. This election is an option you can take each year that lets you write off items $2,500 or less as expenses instead of assets. Expenses typically reduce your income by a larger amount than depreciating an asset over multiple years does. This means you could get a bigger refund.

If you decide to take this option, a form called De Minimis Safe Harbor Election will show up in your tax return. This election will apply to all your businesses, rental properties or farms.

Here are the rules you need to meet to take this election:

  • You don't have an applicable financial statement (most people don't).
  • You have a consistent process for how you record expenses and assets.
  • You record these items as expenses on your books/records.
  • The cost of each item as shown on your receipt is $2,500 or less.

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1 Reply
Coleen3
Intuit Alumni

Would following be Miscellaneous Deduction or 179 Asset Deduction: Photographer buys $2800 camera body, $800 lens, $200 tripod? I've heard of $200 and $500 or arbitrary.

Assets generally must be depreciated. Section 179 is a way of taking the entire amount or any portion of the amount in the year the asset is placed in service.

You may also expense by using the De Minimus Safe Harbor election.

De Minimis Safe Harbor Election

This election for items $2,500 or less is called the De Minimis Safe Harbor Election. This election is an option you can take each year that lets you write off items $2,500 or less as expenses instead of assets. Expenses typically reduce your income by a larger amount than depreciating an asset over multiple years does. This means you could get a bigger refund.

If you decide to take this option, a form called De Minimis Safe Harbor Election will show up in your tax return. This election will apply to all your businesses, rental properties or farms.

Here are the rules you need to meet to take this election:

  • You don't have an applicable financial statement (most people don't).
  • You have a consistent process for how you record expenses and assets.
  • You record these items as expenses on your books/records.
  • The cost of each item as shown on your receipt is $2,500 or less.

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