You may want to use what's sometimes called the $2500 rule. The De Minimis rule allows for expensing of business purchases of $2500 or less. Since the total cost exceeds that amount, you will need to depreciate. If you have any other details regarding this question, please feel free to post them in the comment section.
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.
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.
After going through the asset interview, choose to use the De Minimis Safer Harbor method.
- At this point, the assets are just business expenses.
- TurboTax takes you back to the Your xxx Business screen, so you can enter the expenses in the Other Common Business Expenses, Other Miscellaneous Expenses section of your business.
- Enter a description of your expense (asset) and amount. Continue with the onscreen interview.
