--- title: IRS De Minimis Rule for Deducting Business Property description: IRS De Minimis Rule for Deducting Business Property --- ****Service or Supplies: 866-754-7677** - [Service](https://www.raymorgan.com/remote-technical-support/) - [Supplies](https://www.raymorgan.com/remote-technical-support/) - [Meters](https://www.raymorgan.com/remote-technical-support/) - [Support](https://www.raymorgan.com/faqs) [![RMC a UBEO Company logo 500](https://blog.raymorgan.com/hs-fs/hubfs/RMC%20Images/RMC%20a%20UBEO%20Company%20logo%20500.jpg?width=485&name=RMC%20a%20UBEO%20Company%20logo%20500.jpg) ](https://www.raymorgan.com) [![RMC a UBEO Company logo 200](https://blog.raymorgan.com/hs-fs/hubfs/RMC%20Images/RMC%20a%20UBEO%20Company%20logo%20200.png?width=200&name=RMC%20a%20UBEO%20Company%20logo%20200.png) ](https://www.raymorgan.com) ## IRS De Minimis Rule for Deducting Business Property ## **[![Expense claim form](https://blog.raymorgan.com/hs-fs/hubfs/Imported_Blog_Media/expense-claim-form_M1UyBuPu-1024x683-2.jpg?width=486&height=324&name=expense-claim-form_M1UyBuPu-1024x683-2.jpg)](https://blog.raymorgan.com/hubfs/Imported_Blog_Media/expense-claim-form_M1UyBuPu-2.jpg)IRS has established maximum dollars amounts that taxpayers can rely on when expensing certain business property purchases.** Businesses typically have a policy of expensing (that is, currently deducting instead of depreciating) items that cost less than a threshold amount. It’s simply not worth the trouble of depreciating low-cost items over many years. The amount businesses establish as their expensing thresholds vary widely. Smaller businesses have a threshold of $100-$500, while large businesses have thresholds in the thousands. Until now, the IRS provided no guidance on what the threshold should be, and it was always possible it could argue that a taxpayer’s threshold was too high. However, this has changed. New IRS repair regulations enshrine this threshold expensing practice into law by establishing a new de minimis safe harbor. (IRS Reg. §1.263(a)-1(f).) Also, for the first time, the IRS has created maximum dollar amounts that may be expensed as “de minimis” (***Latin for minor or inconsequential***). This safe harbor became available for all taxpayers on January 1, 2014. **Example:** Greg purchases 10 printers for her business at $495 each for a total cost of $4,950 as shown by the invoice. By using the de minimis safe harbor, he can deduct the entire $4,950 expense in a single year provided that the requirements to use the safe harbor are satisfied. For more information click here [IRS De Minimis Rule](https://www.raymorgan.com/irs-de-minimis-rule-for-deducting-business-property/) Dec 22, 2015 11:24:47 AM | Tags: [expense claim](https://blog.raymorgan.com/tag/expense-claim), [irs de minimis](https://blog.raymorgan.com/tag/irs-de-minimis), [property claim](https://blog.raymorgan.com/tag/property-claim), [RMC Blog](https://blog.raymorgan.com/tag/rmc-blog), [tax deductions](https://blog.raymorgan.com/tag/tax-deductions), [taxes](https://blog.raymorgan.com/tag/taxes) | [0 Comments](https://blog.raymorgan.com/irs-de-minimis-rule-for-deducting-business-property-2#comments-listing) ### Recent Posts ### Subscribe to Ray Morgan Company Blog ### contact information Phone: (530) 343-6065 Email: [info@raymorgan.com](mailto:info@raymorgan.com) Web: [http://raymorgan.com/](https://raymorgan.com/)   [** find a location near you ](https://www.raymorgan.com/rmc-locations/) ![Ray Morgan](https://blog.raymorgan.com/hs-fs/hubfs/RMC_June2019%20Theme/Images/logo-opacity-dark.png?width=25&height=25&name=logo-opacity-dark.png) © 2018 [Ray Morgan Company](https://www.raymorgan.com). All rights reserved. | [Privacy Notice](https://www.raymorgan.com/privacy-notice/) | [Sitemap](https://www.raymorgan.com/sitemap/)