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Posted by Steve Pope on June 3, 2006, 10:22 am
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>> Is there a documented "de minimis" business expense amount,
>> below which I can simply deduct the expense (on schedule C)
>> in 2005?
> 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.
Thanks for explaining this. I always wondered why the
big boys were able to expense stuff that I couldn't.
Steve
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