That’s not exactly what that long IRS document says. You CAN elect to create a de minimis safe harbor of $2500 if you want to for tax purposes, but don’t confuse your tax books with your management books. If you are only looking at the books and depreciation for tax purposes you are lying to yourself about the profitability of the business.
Mark > On Feb 22, 2022, at 7:09 AM, Forrest Christian (List Account) > <li...@packetflux.com> wrote: > > Anything under $2500 is an expense, so sayeth the IRS (subject to one minor > hoop)... > > https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations > > <https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations> > > On Mon, Feb 21, 2022, 2:36 PM Chuck McCown via AF <af@af.afmug.com > <mailto:af@af.afmug.com>> wrote: > Do you guys expense SMs as you go or call them assets and do a mass > depreciation each year? > > I know we had to reverse a bunch of depreciation when we sold the wisp. > Depreciation Recapture. Bunch of crap if you have never heard of it before > and were not expecting it. > > -- > AF mailing list > AF@af.afmug.com <mailto:AF@af.afmug.com> > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > <http://af.afmug.com/mailman/listinfo/af_af.afmug.com> > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com
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