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Returning Member
posted Feb 26, 2024 1:34:53 PM

De Minimis Safe Harbor question

If i elect to use "De Minimis Safe Harbor" 

 

1) Should i write off these assets as expense under Other Expenses Section ?

 

2) Can i choose which asset to use "De Minimis Safe Harbor" ?

 

3) Without AFS, What if some asset less than $2500, and other over $2500. I should write off those under 2500 as expense, and over 2500 as deprecation? right?

 

4) Can i still use 179 for those over 2500, if i use "De Minimis Safe Harbor" for those under 2500?

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3 Replies
Level 15
Feb 26, 2024 1:45:38 PM

1) Should i write off these assets as expense under Other Expenses Section ?

 

Yes

 

2) Can i choose which asset to use "De Minimis Safe Harbor" ?

 

No. You must choose all that are $2,500 or less.

 

 

3) Without AFS, What if some asset less than $2500, and other over $2500. I should write off those under 2500 as expense, and over 2500 as deprecation? right?

 

Right.

 

 

4) Can i still use 179 for those over 2500, if i use "De Minimis Safe Harbor" for those under 2500?

 

Yes

Returning Member
Feb 26, 2024 1:49:07 PM

Thank you. So under 2500, i can write off them as other expenses. And i can still uder 179 to deduct those over 2500, right? 

Employee Tax Expert
Feb 26, 2024 2:04:05 PM

Yes, you can use the DeMinimis Safe Harbor for items under $2,500 and for the rest of your assets you can use Section 179 if they qualify.

  • Note: Effective for taxable years beginning on or after Jan. 1, 2016, the Internal Revenue Service in Notice 2015-82PDF increased the de minimis safe harbor threshold from $500 to $2500 per invoice or item for taxpayers without applicable financial statements. 

@ron2024