DMSH (DeMinimus Safe Habor) election 2014

[ATSMAN]

Good point. But that is generally a strategy for any business with losses to defer expensing to future profitable years by choosing to depreciate! That was true before the safe harbor regs.

[Lion]

A biz with losses may prefer to NOT use the $500 but stick with the $200 limit and depreciate those items to push his/her deductions into future years with profits.

[ATSMAN]

Under what circumstance would we NOT make the annual safe harbor election to use the $500 per invoice/item for EVERY business client? When would you NOT do so?

Can't think of one right now. Almost all my business clients are small business or rentals and the deminimis safe harbor will be all they need. Keep in mind it is a yearly election.

I will past this link that has a Q&A that I find it very helpful:

http://www.aicpa.org/Publications/TaxAdviser/2014/may/Pages/clinic-story-04.aspx

[ttbtaxes]

Under what circumstance would we NOT make the annual safe harbor election to use the $500 per invoice/item for EVERY business client? When would you NOT do so?