Desk
Diligence
3 articles
3 weeks ago12 min read
1099 threshold: the part of each vendor's total that counts toward $2,000
A vendor's total in your books is not the number the IRS tests against $2,000. Which payments come out of it and why, seven vendors worked through, and the setup to do before December 31.
June Talbert
2 months ago19 min read
Section 179 vs. bonus depreciation: what each election does on the return, and what neither one does to your books
The machine cleared the capitalization threshold, so it is an asset. Both elections write off its cost on the return in year one. Your balance sheet still shows it, and your books still depreciate it for seven years.
Delia Hartwell
2 months ago19 min read
De minimis safe harbor: the capitalization policy has to exist before the tax year starts
The $2,500 limit is the easy part. What decides whether you qualify is a written threshold in your own books, dated before the tax year began, and this is what that document says.
Delia Hartwell