There is a safe harbor for business expenses. It is $2500. That means you no longer have to “capitalize and depreciate” anything you buy for your business (computer, furniture, etc.) over time, so long as each individual item costs less than $2,500. You can simply deduct it all (“expense it”) the year you buy it.
Nothing requires expensing these items. Consider a business that doesn't make much profit in year 1 or even has a loss but expects the following years to be profitable. It could be that even after taking into account the time value of money, sometimes it can be more beneficial to take the write off as depreciation over a number of years. Considering the small amount, I would probably just expense it. But it's a decision to be made by both of you.
There is a requirement (kind of stupid but the IRS wants it). I'm not familiar with TT for Business but the 1040 has the election so I would think it would be in the app. if not
The Taxpayer elects Section 1.263(a)-1(f) De Minimis Safe Harbor Election for 2024
LLC name _________________
Address __________
EIN __________
for line 21
Furniture and equipment - Section 1.263(a)-1(f) De Minimis safe harbor election
if that won't fit then
Furn. & Equip. Safe Harbor Election
