Not all informational email blasts are the same. When I run across a particularly interesting information, I like to pass along. This is from the Lutz Newsletter. - Jerry Slusky, Attorney
Taxpayers
without SEC filings or audited financials now have the ability to potentially
expense asset purchases below $2,500 per item. This threshold is increased
from $500 per item by IRS Notice 2015-82, issued just last week. The final
tangible property regulations issued in 2013 and applied to taxpayers for the
2014 tax year provided for a de minimis cost threshold under
which purchases that might previously have been required to be capitalized
could be expensed as materials and supplies. Many small businesses thought the
$500 threshold was too low and created additional burdensome record-keeping
requirements. As a result of much industry pressure, the IRS appears to have
relented and increased this threshold. The ability to use this de
minimis election does require that the business has adopted a
capitalization policy. We would advise that such policies be updated to
consider the new dollar threshold.
Taxpayers
with audited financials continue to have a $5,000 per item capitalization
threshold.