Article Date:
September 2023

Word Count:



Act Now! Get Your Safe-Harbor Expensing in Place

Here are two tax words that you have to love: “safe harbor.”


And here are five additional tax words to love: “tax-favored expensing with no recapture.”


To create and protect your safe-harbor expensing, you make—or your corporation or partnership makes—a formal election on your tax return to use the de minimis safe harbor to expense assets costing $2,500 or less (or $5,000 with applicable financial statements, as explained later).


This wonderful safe-harbor election eliminates the burdens of



tracking those small-dollar assets,


depreciating and/or Section 179 expensing them in your tax returns and account books, and


remembering to remove them from your books when you remove the assets from your business.


The term “safe harbor” means that the IRS will accept your expensing of the qualified assets if you properly abided by the safe-harbor rules. ... Log in to view full article.

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