Safe Harbor Election

[Super Mom]

Ok, will include the form for the des minimis safe harbor election for a client. I've never done this before and have no idea where to check for this election in my software. I use ATX. Anyone happen to know?

[ATSMAN]

Ok, will include the form for the des minimis safe harbor election for a client. I've never done this before and have no idea where to check for this election in my software. I use ATX. Anyone happen to know?

Does your software allow a pdf attachment to the return?

Put a note that taxpayer is electing to exercise his option. I just cut and paste this:

"Notice 2015-82, issued on November 24,2015, increases from $500 to $2,500 the de minimis safe harbor threshold for taxpayers without an AFS. The threshold increase is effective for taxable years beginning on or after January 1, 2016."


The IRS also announced that for tax years prior to 2016, it would not raise upon examination the issue of whether a taxpayer without an AFS can use the $2,500 de minimis safe harbor threshold if it otherwise satisfies the de minimis safe harbor requirements.

[Burke]

Ok, will include the form for the des minimis safe harbor election for a client. I've never done this before and have no idea where to check for this election in my software. I use ATX. Anyone happen to know?

Yes. Go to Add Forms, and type in Elections. Up comes a form with all the elections you can make on a tax return. Go to toolbar on bottom of form and click on Depreciation. The de minimis election is way down on that page. Check the box. If you want to print for the client, use Elections tab on bottom toolbar.

[TaxGuyBill]

Does your software allow a pdf attachment to the return?

Put a note that taxpayer is electing to exercise his option. I just cut and paste this:

"Notice 2015-82, issued on November 24,2015, increases from $500 to $2,500 the de minimis safe harbor threshold for taxpayers without an AFS. The threshold increase is effective for taxable years beginning on or after January 1, 2016."


The IRS also announced that for tax years prior to 2016, it would not raise upon examination the issue of whether a taxpayer without an AFS can use the $2,500 de minimis safe harbor threshold if it otherwise satisfies the de minimis safe harbor requirements.

I hope you are doing more than that statement to make the election.

This is the required information on the election: "The statement must be titled “Section 1.263(a)-1(f) de minimis safe harbor election” and include the taxpayer's name, address, taxpayer identification number, and a statement that the taxpayer is making the de minimis safe harbor election under §1.263(a)-1(f)."


As for where to have ATX do it, I don't know. There should be a check-box somewhere to make it, so you may be able to search for "elections" in the software to see if that comes up with anything. If you can't find it and nobody here helps you, you may need to contact customer support.

[Super Mom]

Great, I did that! Thanks so much!!

[ATSMAN]

Sorry I should have been clear. The cut and paste is in addition to the standard election language to show the election of the higher limit.

The software puts the Tax ID and taxpayer name on each pdf on the top line.