can't find the election for $500 1.162-3

[Marie]

Does ATX have this, I can only find 1.263a.

[Lynn EA USTCP in Louisiana]

Marie, you are right - it's not there.  I wonder if it will be included in tomorrow's program update.  If not, then you'll (and the rest of us) will have to add a blanket election for this reg.  I found a sample:

 

It is the company's policy to capitalize assets that cost $___ or more.  All capitalized assets will be depreciated in accordance with the company's depreciation policy.  Assets that cost less than $__ will be expensed in the period purchased.  Amounts paid for assets with an estimated useful life of 12 months or less with a value of $___ or less are expensed in the period purchased as well.  Management will periodically review these levels and make modifications as necessary.  

 

Hope this helps, Lynn

[Marie]

Things I've read sometimes refer to the $200 and $500 as the same reg 1.263a. It's been very confusing

[grmy2h]

I thought 1.162-3 was an accounting method change and 1.263 - is the election.

 

I'm so confused.

[kcjenkins]

$200 is under IRC 263(a) Reg. 1.263 (a)-1(f)

$500 is under IRC 263(a) Reg. 1.263 (a)-3(h)

[Marie]

I KNOW, BUT IS IT IN THE ATX ELECTIONS? OR DO I NEED TO MAKE MY OWN

[grmy2h]

$200 is under IRC 263(a) Reg. 1.263 (a)-1(f)

$500 is under IRC 263(a) Reg. 1.263 (a)-3(h)

 

They are both on the election screen - depreciation/amortization tab, near the bottom.

[Marie]

1263 A 3H SAYS "apply safe harbor for small taxpayers to NOT apply improvement rules to eligible bldg. materials"

Is that the $500 safe harbor rule on repairs and supplies? Sorry I'm so dense - all this confusion, I just want to make sure I get the right election.

[kcjenkins]

Yes.  And you don't need to apologize for asking for more info.  The reason we answer is to help, so if it's not clear, we are happy to try to make it clearer.