{"id":196,"date":"2015-04-21T16:11:30","date_gmt":"2015-04-21T16:11:30","guid":{"rendered":"http:\/\/titlestadcpa.debandkatdesigngroup.com\/?p=196"},"modified":"2015-11-03T21:43:09","modified_gmt":"2015-11-03T21:43:09","slug":"capital-expenditures-de-minimis-rule","status":"publish","type":"post","link":"https:\/\/titlestadcpa.com\/capital-expenditures-de-minimis-rule\/","title":{"rendered":"Capital Expenditures De Minimis rule"},"content":{"rendered":"

[et_pb_section][et_pb_row][et_pb_column type=”3_4″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n

\"nutsandbolts\"Capital Expenditures \u2013 De Minimis Safe Harbor Election<\/strong>
\n(Reg. 1.263(a)-1(f);-1(g);-1(h))<\/p>\n

The IRS has issued Final Regulation 1.263(a)-1(f) providing a de minimis safe harbor election for amounts paid to acquire or produce tangible property.<\/p>\n

In the case of a taxpayer without an Applicable Financial Statement (no SEC reporting or audited Financial Statement) a taxpayer may elect to expense rather than capitalize amounts paid for property that do not exceed $500 per invoice or per item.<\/p>\n

However in order for the taxpayer to elect this rule, the taxpayer should have accounting procedures at the beginning of the taxable year treating as an expense<\/strong> in their accounting books:<\/p>\n

1. Amounts paid for property costing less than a specified dollar amount; or
\n2. Amounts paid for property with an economic useful life of 12 months or less.<\/p>\n

In addition the taxpayer must be able to demonstrate that these amounts have been treated as an expense on its books and records in accordance with the above procedures and<\/strong>:<\/p>\n

The amount paid for the property does not exceed $500 per invoice or per item<\/strong> substantiated by the invoice.<\/p>\n

It is important to note that the above will typically apply to small to midsize businesses that are not public and don\u2019t file SEC reports, or are private and do not have a certified annual audit by a CPA.<\/p>\n

For further guidance on these IRS regulations or putting the applicable internal accounting procedures in place, please call the author at 704 491 5201 or email to ptitlestad@bellsouth.net.<\/em><\/strong><\/a><\/strong><\/p>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_4″][et_pb_contact_form admin_label=”Contact Form” global_module=”133″ captcha=”on” email=”ptitlestad@bellsouth.net” title=”Contact Us” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_button=”off” button_letter_spacing=”0″ button_use_icon=”default” button_icon_placement=”right” button_on_hover=”on” button_letter_spacing_hover=”0″ saved_tabs=”all”] [\/et_pb_contact_form][et_pb_text admin_label=”Contact Us” global_module=”52″ saved_tabs=”all” background_layout=”light” text_orientation=”left” text_font_size=”16″ use_border_color=”on” border_color=”#0079c0″ border_width=”3px” border_style=”solid” custom_padding=”10px|10px|10px|10px”]<\/p>\n

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\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>
\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div> Capital Expenditures \u2013 De Minimis Safe Harbor Election (Reg. 1.263(a)-1(f);-1(g);-1(h)) The IRS has issued Final Regulation 1.263(a)-1(f) providing a de minimis safe harbor election for amounts paid to acquire or produce tangible property. In the case of a taxpayer without an Applicable Financial Statement (no SEC reporting or audited Financial Statement) a taxpayer may […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"

\"nutsandbolts\"Capital Expenditures \u2013 De Minimis Safe Harbor Election<\/strong>
(Reg. 1.263(a)-1(f);-1(g);-1(h))<\/p>

The IRS has issued Final Regulation 1.263(a)-1(f) providing a de minimis safe harbor election for amounts paid to acquire or produce tangible property.<\/p>

In the case of a taxpayer without an Applicable Financial Statement (no SEC reporting or audited Financial Statement) a taxpayer may elect to expense rather than capitalize amounts paid for property that do not exceed $500 per invoice or per item.<\/p>

However in order for the taxpayer to elect this rule, the taxpayer should have accounting procedures at the beginning of the taxable year treating as an expense<\/strong> in their accounting books:<\/p>

1. Amounts paid for property costing less than a specified dollar amount; or
2. Amounts paid for property with an economic useful life of 12 months or less.<\/p>

In addition the taxpayer must be able to demonstrate that these amounts have been treated as an expense on its books and records in accordance with the above procedures and<\/strong>:<\/p>

The amount paid for the property does not exceed $500 per invoice or per item<\/strong> substantiated by the invoice.<\/p>

It is important to note that the above will typically apply to small to midsize businesses that are not public and don\u2019t file SEC reports, or are private and do not have a certified annual audit by a CPA.<\/p>

For further guidance on these IRS regulations or putting the applicable internal accounting procedures in place, please call the author at 704 491 5201 or email to ptitlestad@bellsouth.net.<\/em><\/strong><\/a><\/strong><\/p>","_et_gb_content_width":"","footnotes":""},"categories":[8],"tags":[],"yoast_head":"\nCapital Expenditures De Minimis rule - Philip K. Titlestad CPA, PLLC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/titlestadcpa.com\/capital-expenditures-de-minimis-rule\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Capital Expenditures De Minimis rule - Philip K. 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