When you purchase items for your business, you can either deduct the full cost of the expense at once, or you can deduct the cost over multiple years (depreciation). One-time expenses typically reduce your income by a larger amount than depreciating an asset over multiple years.
The De Minimis Safe Harbor election lets you deduct the full cost of items worth $2,500 or less, instead of depreciating. The election is available for Schedule C businesses, rentals, farms, and farm rentals.
For instructions on claiming the De Minimis Safe Harbor Election in TurboTax, see the TurboTax FAQ below and select your product.
Expensing Assets with the Safe Harbor Election
Taking Business Tax Deductions
________________________________________________________________________
For items over $2500, you may be able to depreciate them 100% - but this is entered in the Assets/Depreciation screen. See Section 179 - Business Assets
What is MACRS and MACRS convention?
Reporting Self-Employment Business Income and Deductions
What Is the IRS Form 4562?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
