The expense option is per IRS code 263(a) and is known as the de minimis safe harbor rule. If your assets cost less than $2,500 you can treat them as expenses in the year purchased. The purpose is to simplify your tax return preparation. California does honor the rule, so no adjustment is required on that return.
IRS code section 263(a)
California Regulations
@Think57
[Edited 3/8/22 at 12:32 PM PST]
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