I have a question about the de minimis safe harbor. I read is 2500.00 per invoice in 2016, but taxbook reads like that applies now. So, if a rental put in a fridge for 537 I don't have to capitalize? The 2500 applies per item right, not total?
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It seems they would meet the "qualyfing small taxpayer safe harbor" I guess the eligible building would be the rentals, which would be well under 1 million. -
The $2,500 can be elected from 2016 forward, but the IRS has stated they will accept it for 2015. Remember that your client needed to make the election before the year began to choose his level to expense as materials and supplies vs. depreciate. And, it doesn't have to be $2,500.Comment
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As a side note, California as specifically said they will NOT accept amounts over $500 until 2016. I don't know about other states.Comment
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