AnnetteB6
Employee Tax Expert

Deductions & credits

You can use either method, just expensing the cost of the pedals or entering them as an Asset and using the section 179 deduction.  

 

You are correct in the assumption that because the pedals have a useful life of more than a year that the item would normally be classified as an Asset for depreciation.  However, the guidance has changed within the last few years (2016 and later) to allow you to expense certain items instead of depreciating them if your business meets certain requirements.  This is the De Minimis Safe Harbor Election. 

 

TurboTax will give you guidance on the screen to be sure that you qualify to expense the items instead of depreciating them and taking the section 179 deduction.

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