Section 179 Expense Deduction - Business Equipment

[soho333]

I have TT Home and Business 2021 Mac edition.  I have multiple items to expense that each meet Section 179 requirements to expense those items.  After going through the Business Asset interview, it brings me to "Other Miscellaneous Expenses" to include these items.  First question, does each item need to be listed with their amounts, or can I use a single line item, e.g., "Business Equipment" and have an aggregated amount?  The total would exceed the $2500 threshold for a single item per IRS rules so I don't want to have a red flag raised due to how the data is entered.  My second question is do I also add a cell phone purchase here which is for business use?  Thanks.

[ColeenD3 · Accepted solution]

I think you are confusing the Section 179 deduction with the De Minimus Safe Harbor election. If you wish to enter the safe harbor election, enter each item separately.

De Minimis Safe Harbor Election

This election for items $2,500 or less is called the De Minimis Safe Harbor Election. This election is an option you can take each year that lets you write off items $2,500 or less as expenses instead of assets. Expenses typically reduce your income by a larger amount than depreciating an asset over multiple years does. This means you could get a bigger refund.

If you decide to take this option, a form called De Minimis Safe Harbor Election will show up in your tax return. This election will apply to all your businesses, rental properties or farms.

Here are the rules you need to meet to take this election:

• You don't have an applicable financial statement (most people don't).
• You have a consistent process for how you record expenses and assets.
• You record these items as expenses on your books/records.
• The cost of each item as shown on your receipt is $2,500 or less.

To change your phone number:

To update your TurboTax (non-Advantage) account email, phone number, mailing address, or password:

1. Sign into your TurboTax account.
2. Select Intuit Account from the menu, just above Sign Out.
3. Select Sign in & Security to update information like your user ID, password, phone number, or email
   • Or select Personal Info to update information like your name, address, or job.

To update your TurboTax Advantage account, see these instructions.

[soho333]

Thank you @ColeenD3. Just to confirm, does a cell phone purchase also qualify for this same treatment?

As for the form, the TT entry form is for "Other miscellaneous expenses" which I have other items listed that are not equipment related.  Without a separate form, how will TT separate the non-equipment items?  Apologies for the questions on mechanics, as this is the first year I am doing this.

[ColeenD3 · Accepted solution]

Yes, your cell phone would also be an asset and you can take the de minimus safe harbor.