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Business & farm
To understand why this is not correct thinking: "The car actually cost $3400, and at the 27% business use basis would be $918"
You still have the car; 27% of it is not gone. The Cost to buy it is not part of Expense, but was your expenditure.
Expenditure = you spent money and got something to show for it. Got Something For the Money = asset.
Expense = you bought or paid for something that also is gone, now, such as printer paper or electricity or stamps. The cost was used to generate your business income, so that makes it business expense.
The word "depreciation" is used to describe "the loss of Value of my asset over time due to the fact that the asset (vehicle) wears out over time (per the IRS = a few years for a vehicle)."
The IRS determines the "useful life" and that's why actual depreciation would be the "divide by 5" as explained in this topic.
Which is why, for a mixed use vehicle, tracking and reporting Mileage to see the mileage allowance often makes the most sense. That allowance or mileage rate is for ownership, operation, registration, insurance, maintenance, and general wear and tear on that vehicle, as an actual amount and not overall %.
For this: "Can you clarify what assets are included under the de minimis safe harbor election?"
Let's pretend your business is housekeeping, so that car gets loaded with your vacuum cleaners, a carpet cleaner, and cleaning supplies that are consumed.
Cleaning supplies = expense.
Purchase of vacuum cleaners and carpet cleaners are Assets that would typically qualify for de minimis expense, instead of needing to be tracked over time and only partially written down as Expense, as they wear out over time.
Hope that helps.