Very helpful! Thank you for being so clear, walking through where these resources are and even giving examples of what you do when filings for clients. Thank you!
If I use De Minimis for furniture I buy for a rental property (all under $2500 each), do I need to recapture that write-off when I sell the property? Thank you
Depreciation recapture is meant to prevent people from taking capital gain from the disposal of an asset where part or all of that gain was due to depreciation. The IRS didn't want you to used to generate ordinary expenses, then convert what should be ordinary gains into more tax preferential capital gains. Depreciation Recapture is limited to the amount of depreciation taken up to the gain recognized on disposition. It doesn't apply to losses.
So, say you have 1 invoice for $4,000, which is for 2 laptops at $2,000 each: are you allowed to use the de minimis deduction or not? You mention a few times that the limit is on the invoice amount but I thought it had to do with each separate item. Thanks for your videos.
Great explanations! One quick question: if my business revenue is $0, can I still use De Minimis Safe Harbor Election to write off the business expense items $2,500 or less? ( I know section 179 can only be used to write off the business income)
Do I have to elect one of these options? Or can I omit all of them? I’m a part time door dash driver and only bring in about $3k a year from driving. I don’t even know if this’ll be beneficial to me
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GREAT VIDEO!! THANK YOU!!! I wasn't sure where the De Minimis expense line should be recorded and how, your description in other expenses is perfect!
Thank you -- glad it was helpful, Mark! Be sure to subscribe for more videos! :D
Very helpful! Thank you for being so clear, walking through where these resources are and even giving examples of what you do when filings for clients. Thank you!
Glad it was helpful!
You are amazing! That was a crystal clear explanation and answered a lot of my questions. Thank you so much for making this video!
This a great video, thank you so much. I just found your channel and as a first year CRTP, I’m binge watching your videos and learning a lot.
Thank you Alex for sharing the information. So, if a company ended up selling the assets, who in IRS is monitoring the recapture reporting?
I like your videos about taxes, hopefully I can find all solutions of tax questions in your videos. Thanks.
Thank you for watching and for your kind words, Maple Leaf! Welcome to the channel! :D
If I use De Minimis for furniture I buy for a rental property (all under $2500 each), do I need to recapture that write-off when I sell the property? Thank you
Excellent video! Thank you!
Well explained, learned a lot, we will definitely using this election.
What does Recapturing Depreciation mean and how does it work? Does recapturing work the same for rentals as well as vehicles and other Assets?
Depreciation recapture is meant to prevent people from taking capital gain from the disposal of an asset where part or all of that gain was due to depreciation. The IRS didn't want you to used to generate ordinary expenses, then convert what should be ordinary gains into more tax preferential capital gains. Depreciation Recapture is limited to the amount of depreciation taken up to the gain recognized on disposition. It doesn't apply to losses.
how would they know if property has dropped 50% in use?
You made the video.. thank you so much.. i wasnt sure you seen it..
You're welcome -- thank you for watching and for your question! :D
So, say you have 1 invoice for $4,000, which is for 2 laptops at $2,000 each: are you allowed to use the de minimis deduction or not? You mention a few times that the limit is on the invoice amount but I thought it had to do with each separate item. Thanks for your videos.
Great explanations! One quick question: if my business revenue is $0, can I still use De Minimis Safe Harbor Election to write off the business expense items $2,500 or less? ( I know section 179 can only be used to write off the business income)
Do I have to elect one of these options? Or can I omit all of them? I’m a part time door dash driver and only bring in about $3k a year from driving. I don’t even know if this’ll be beneficial to me
Does the item need to be 100% business use to use the De Minimis Safe Harbor deduction?
So I'm still in clear is inventory no longer allowed under this anymore. I resale thrift stuff
how would they know if property has dropped 50% in use?