Recording an asset purchase under the de minimis safe harbor threshold of $2,500 allows you to immediately expense all items which meet the $2,500 threshold for the current tax year. The assets are reported as expenditure lines on your self-employment activity expenditure section.
Section 179 deduction allows you to expense part or all of the cost of individual section 179 assets. The 179 deduction can be used for assets that cost more than $2,500. Your Section 179 deduction amount cannot exceed your net business income for the year, but if it does, you can carry the excess over to a future tax year. The deduction is reported on line 2 of IRS Form 4562.
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