Now the IRS provides a procedure that will allow a business to expense small asset acquisitions without the concern that the IRS may require these small assets to be capitalized.Ī taxpayer may elect, under a de minimis safe harbor election, to expense any amount paid in the tax year for the acquisition or production of a unit of tangible property if the amount specified under the de minimis safe harbor election meets the requirements discussed below.Ī taxpayer can elect to apply the de minimis safe harbor if: Taxpayers often like to expense the cost of small fixed assets acquired during the year due to the recordkeeping cost. Print Safe Harbor Election Allowing Deduction of Amounts Paid to Acquire or Produce Property
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