What is the de minimis safe harbor for small purchases?

How to use it (IRS tangible property regulations page and Publication 334, 2025):

1. Expense the items in your books under a consistent policy in place at the start of the tax year. Without an applicable financial statement, the policy does not have to be written.
2. Attach a statement titled "Section 1.263(a)-1(f) de minimis safe harbor election" to your timely filed original return (including extensions), with your name, address, taxpayer identification number and a statement that you are making the election.
3. Report the amounts as other expenses in Part V of Schedule C.

Limits and exceptions:

• It does not cover inventory or land.
• Once elected, it applies to all purchases that meet its criteria that year.
• Amounts over the limit are not forced into capitalization by the election; they follow the normal rules.
• It is an annual election, not a change in accounting method, so you do not file Form 3115.

An applicable financial statement includes audited statements with a CPA report and statements required by a government agency other than the IRS. General information, not tax advice.