IRS Increases De Minimis Threshold to $2,500 for Expensing of Capital Purchases

With Notice 2015-82 released November 24, 2015, the Internal Revenue Service (IRS) has provided guidance which increases the safe harbor threshold to $2,500 for deducting capital expenditures for taxpayers that do not prepare an applicable financial statement (e.g. audited financial statement). As a result of the increased threshold, taxpayers can accelerate deductions for larger capital purchases that would otherwise be spread over several tax years through depreciation.

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