skip navigation
Search Help
Navigation Help

Tax Map Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

International
Tax Topic Index

Affordable Care Act
Tax Topic Index

Exempt Organization
Tax Topic Index

FAQs
Forms
Publications
Tax Topics
Worksheets

Comments
About Tax Map

IRS.gov Website
Publication 334
taxmap/pubs/p334-034.htm#en_us_publink100067383

De Minimis Safe Harbor for Tangible Property(p40)

rule
Generally, you must capitalize costs to acquire or produce real or tangible personal property used in your trade or business, such as buildings, equipment, or furniture. However, if you elect to use the de minimis safe harbor for tangible property, you may deduct de minimis amounts paid to acquire or produce certain tangible property if these amounts are deducted by you for financial accounting purposes or in keeping your books and records.
If you have an applicable financial statement, you may use this safe harbor to deduct amounts paid for tangible property up to $5,000 per item or invoice. If you do not have an applicable financial statement, you may use the de minimis safe harbor to deduct amounts paid for tangible property up to $2,500 per item or invoice.
Amounts qualifying under this de minimis safe harbor should be included as other expenses in Part V of Schedule C.
taxmap/pubs/p334-034.htm#en_us_publink100067384

More information. (p40)

rule
For details on making this election and requirements for using the de minimis safe harbor for tangible property, see chapter 1 of Pub. 535.