It looks like an S-corporation has to expense tangible items <= $2,500 on their corporate books (not talking about tax books) in order to qualify for the De Minimis Safe Harbor deduction. This has to...
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It looks like an S-corporation has to expense tangible items <= $2,500 on their corporate books (not talking about tax books) in order to qualify for the De Minimis Safe Harbor deduction. This has to be done for the whole tax-year I think. Would recording a $2,000 item in the Corp Books as an asset (capitalize) and then immediately the same day 100% expensing the whole amount to an expense type account, qualify per De Minimis rules? I think on the gen ledger for a computer it looks like: Day 1, Db Asset-Equipment Acct +$2000 Day 1, Cr Checking Acct +$2,000 Day 1, Cr Asset-Computers Acct -$2,000 Day 1, Db Expense-Computers Acct -$2,000 It appears to me like it is still expensed on the books. Is it, and does it meet the IRS De Minimis Safe Harbor rule of requiring the corporate books to expense these purchases? Before someone points out that this is not the best way to do the books for meeting the De Minimis requirement, please note that for 2026 I just expense theses <= $2500 tangible items from the get go and never put them in an asset account. Thanks.