My wife had about $200 of expenses that would normally be amortizable business start-up costs or depreciable office equipment. Capitalizing and amortizing/depreciating these costs/assets seems silly, given the small total.
Is there a documented "de minimis" business expense amount, below which I can simply deduct the expense (on schedule C) in 2005?
Thanks!
"Ian Pilcher" wrote
Not really. If you do that (expense the items) it would be up to you to convince an auditor that the amount was so small to capitalize. I have found that any amount to-be considered "de minimis" needs to be so in light of the total business assets, revgenues, etc. You might hear stories of "company policy" to expense anything less than $500, $5,000, etc, and those ~are~ de minimis in light of total assets for those types of firms. So your policy might need to be toned to your specifics (any single item less than $50). And that might seem reasonable to an auditor.
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
Thanks for explaining this. I always wondered why the big boys were able to expense stuff that I couldn't.
Steve
"Steve Pope" wrote
Snipped a lot
Yeah, Some of the bigger firms expense things as "supplies" that would break a small form like me to even be able to pay for. Yet again, I've heard of some firms that capitalize a trashcan and stapler. So the reality is, have a policy that makes sense and that you are willing to deal with.
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
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