Did you know the IRS Raised "Tangible Property Expensing Threshold" from $500 to $2500?
The new $2,500 threshold applies to any such item substantiated by an invoice. As a result, small businesses will be able to immediately deduct many expenditures such as electronics, furniture and small tools that would otherwise need to be spread over a period of years through annual depreciation deductions.
As before, businesses can still claim deductible repair and maintenance costs, even if they exceed the $2,500 threshold.
The new $2,500 threshold takes effect starting with tax year 2016. In addition, the IRS will provide audit protection to eligible businesses by not challenging use of the new $2,500 threshold in tax years prior to 2016.
If you need more information, please contact us at info@huffandmarshall.com or 714-841-9710.
As before, businesses can still claim deductible repair and maintenance costs, even if they exceed the $2,500 threshold.
The new $2,500 threshold takes effect starting with tax year 2016. In addition, the IRS will provide audit protection to eligible businesses by not challenging use of the new $2,500 threshold in tax years prior to 2016.
If you need more information, please contact us at info@huffandmarshall.com or 714-841-9710.