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Level 2
posted Jun 3, 2019 1:47:02 PM

Is there a reason I wouldn't want to take a 100% special depreciation allowance on a $500 laptop?

It's an item I plan on using until it no longer works, and it seems like such a small amount to depreciate over 5 years.

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1 Best answer
Expert Alumni
Jun 3, 2019 1:47:03 PM

You do not need to depreciate a laptop costing $500.

In fact, with the de minimis safe harbor election, you can fully expense any item costing $2,500 or less.

Please read this IRS document for more information:

https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations


1 Replies
Expert Alumni
Jun 3, 2019 1:47:03 PM

You do not need to depreciate a laptop costing $500.

In fact, with the de minimis safe harbor election, you can fully expense any item costing $2,500 or less.

Please read this IRS document for more information:

https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations