An interactive and engaging blog to share updated tax thoughts and concepts for US taxpayers - both individuals and business owners. Experienced CPA shares great US tax ideas. Also latest IRS rules that offer opportunities to plan on your taxes for next year.
Jan 15, 2017
Capital Assets - How much can you expense directly
Capital assets purchased in business have to be capitalized and depreciated over the life of the asset as allowed under IRS rules. However, under new regulations, the IRS has set safe harbor rules under which acquired items do not need to be capitalized. This safe harbor is $5,000 for taxpayers with an audited financial statement or $2,500 for taxpayers without an audited financial statement.