Author Topic: Has anyone used the Safe Harbor for Small Taxpayers deduction?  (Read 1153 times)

andysandp

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Has anyone used the Safe Harbor for Small Taxpayers deduction?
« on: November 26, 2019, 01:23:41 PM »
I read if I use the Safer Harbor for Small Taxpayers deduction, I could write off a new heating system in 1 year, as long as the repair total for the year is $10,000.

Is this true?

The unit is worth about $600,000, so $10,000 is the maximum amount you can write off.

Has anyone used this SHFT deduction?

Thanks!

SeattleCPA

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Re: Has anyone used the Safe Harbor for Small Taxpayers deduction?
« Reply #1 on: November 26, 2019, 04:35:01 PM »
I read if I use the Safer Harbor for Small Taxpayers deduction, I could write off a new heating system in 1 year, as long as the repair total for the year is $10,000.

Is this true?

The unit is worth about $600,000, so $10,000 is the maximum amount you can write off.

Has anyone used this SHFT deduction?

Thanks!

All the time. We're a CPA firm!

Here's a post from few years ago when the tangible property regulations were coming out (these regs, called the TPRs, create the safe harbors)

https://evergreensmallbusiness.com/small-businesses-and-the-new-sec-263-repair-regulations/

BTW the description of the $10,000 small business safe harbor is accurate in the blog post... but that $500 de minimis safe harbor got bumped up from $500 to $2500.
« Last Edit: November 26, 2019, 04:38:31 PM by SeattleCPA »