As I read the de minimus instructions, my daughter would not have to capitalize the purchases, but could expense them. If she has an AFS (applicable financial statement), she could expense up to $5,000 per item. But, what is an AFS? Is this an invoice? Would it have to be submitted with her tax return? How does one do this if e-filing the return?
Also, does she have to prove to the IRS in some way that she qualifies for a de minimus status?
Thanks so much for your response to such a complicated subject!
