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To: Cedar

A de minimis safe harbor election
Note: Effective for taxable years beginning on or after January 1, 2016, the Internal Revenue Service in Notice 2015-82 PDF increased the de minimis safe harbor threshold from $500 to $2500 per invoice or item for taxpayers without applicable financial statements. In addition, the IRS will provide audit protection to eligible businesses by not challenging the use of the $2,500 threshold for tax years ending before January 1, 2016 if the taxpayer otherwise satisfies the requirements of Treasury Regulation ยง 1.263(a)-1(f)(1)(ii).

https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations


4 posted on 04/08/2022 1:13:37 PM PDT by Raycpa
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To: Raycpa

I forgot about safe harbor,,had read briefly on that yesterday.

So, would I list the computer & software under Part V, Other Expenses, and then attach the statement described below?

You should attach a statement titled “Section 1.263(a)-1(f) de minimis safe harbor election” to the timely filed original federal tax return including extensions for the taxable year in which the de minimis amounts are paid. The statement should include your name, address, and Taxpayer Identification Number, as well as a statement that you are making the de minimis safe harbor election.


5 posted on 04/08/2022 1:21:31 PM PDT by Cedar
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