De Minimis Safe Harbor - Materials & Supplies

[user17691337843]

I am confused on some of the answers I've found for DMSH and materials and supplies here and other forums. From what I've read a lot of people are saying that incidental items don't need to be claimed under the DMSH but the materials and supplies as these are normally expensed anyhow.

However, I keep reading this from the IRS publication and it seems like if I am going to claim DMSH, I need to claim those items - say a $60 tool, $8 bottle of glue, under DMSH:

• Application with de minimis safe harbor – If you elect to use the de minimis safe harbor and any materials and supplies also qualify for the safe harbor, you must deduct amounts paid for these materials or supplies under the safe harbor in the taxable year the amounts are paid or incurred. Such amounts are not treated as amounts paid for materials and supplies and may be deducted as business expenses in the taxable year they are paid or incurred.

Source: www.irs.gov/businesses/small-businesses-self-employed/tangible-prop[product key removed]ations

So does EVERYTHING that was materials and supplies go under DMSH if you elect it?

[M-MTax]

The safe harbor covers all items $2,500 or less. You can't pick and choose once you make the election.

[user17691337843]

That's how I read it as well; but only for material / supplies; other expenses such as repairs / cleaning / maint would still be deducted as normal.

There seems to be an overwhelming response that incidentals can still be deducted outside of DMSH, which is also NOT how I read it either.

[M-MTax]

I read it the same as you have read it.