What can I expense or depreciate with the business safe harbor election?
When you purchase items for your business, you can either deduct the full cost of the expense at once, or you can deduct the cost over multiple years (depreciation). One-time expenses typically reduce your income by a larger amount than depreciating an asset over multiple years. This means you could get a bigger refund.
The De Minimis Safe Harbor election lets you deduct the full cost of items worth $2,500 or less, instead of depreciating. You can also use the Safe Harbor Election for Small Taxpayers to expense the cost of improvements to business buildings if you qualify. These elections are available for Schedule C businesses, rentals, farms, and farm rentals.
For instructions on claiming the De Minimis Safe Harbor Election in TurboTax, select your product.
How do I claim the De Minimis Safe Harbor Election with TurboTax Online?
Go to the business expenses screen under Income in the Federal section, then select Self-Employment, and then select Start next to Self-employment income and expenses.
On the Did you have any self-employment income or expenses? screen, answer Yes
If you land on the 2025 self-employed work summary screen, select Review next to the business you’re entering assets for, or Add another line of work.
Follow the on-screen instructions to enter your self-employment details.
When you reach the Select the expense categories you have screen, select Assets, then Continue.
Answer the on-screen questions about additional expenses to check, then select Keep going
On the Expenses screen, select Edit next to the Assets category.
Answer Yes to the question Did you buy, or do you already own, any depreciable assets related to this business (other than vehicles)?
On the next screen, answer Yes to the question Did you buy any items that each cost $2,500 or less in 2025?
Answer the questions on the following screens. On the screen Now, let’s review each item you bought:
If you select Yes on the screen Did you buy any items for any business, rental property and/or farm that cost $2,500 or less in 2025?, you will be taken back to the Your [business] info screen, where you can enter each item you would like to expense in the Expenses section.
If you select No on the screen Did you buy any items for any business, rental property and/or farm that cost $2,500 or less in 2025?, you will be asked about building improvements on the next screen.
If you made building improvements for your business in 2025, answer Yes, and follow the instructions below to make the Safe Harbor Election for Small Taxpayers.
If you didn’t make any building improvements, answer No, and continue through the questionnaire to return to the Your [business] info screen. We will generate the De Minimis Safe Harbor Election form and add it to your tax return.
How do I claim the De Minimis Safe Harbor Election with TurboTax Desktop?
Open or continue your return.
Select Search Topics. Search for and select business expenses.
If you land on the Business Summary screen, select Edit next to the business you’re entering assets for, or Add another business to enter a new business.
Answer the questions about your business until you get to the Business Expenses screen.
Select Start or Update next to Assets and depreciation.
Answer Yes to the question Did you buy or own any assets, other than vehicles, in this business?
On the next screen, answer Yes to the question Did you buy any items for any business, rental property and/or farm that cost $2,500 or less in 2025?
Answer the questions on the following screens. On the screen Now, let’s review each item you bought:
If you select Every item I bought costs $2,500 or less, you will be taken back to the Your Business screen, where you can enter each item you would like to expense in the Other Miscellaneous Expenses section.
If you select Some items I bought cost $2,500 or less and some cost above $2,500, you will be asked about building improvements on the next screen.
If you made building improvements for your business in 2025, answer Yes, and follow the instructions below to make the Safe Harbor Election for Small Taxpayers.
If you didn’t make any building improvements, answer No, and continue through the questionnaire to return to the Your Business screen. We will generate the De Minimis Safe Harbor Election form and add it to your tax return.
