Where to list on sch c

[tst]

When making the election for sec 1.263(a)-1(f) $500 de minimis election on sch C would you list each equipment purchase of $500 or less separately in other expenses? Or group together if together where? Thanks in advance.

[Lion EA]

Where ever they fit.  Supplies.  Materials.  Repairs.  (Well, I guess that also depends on the elections.)

[tst]

Some supplies. Put in supplies but rest is equipment. No line so wondering if I should list each separately to show $500 or under? Or just lump together. Just curious. All works out the same but trying to report properly to not trigger questions.

[Lion EA]

Most of mine so far have fit in supplies or office supplies and one computer repair (network).  I think the point of the election is to NOT have to list them separately.  But, other than the items you depreciate and meals/entertainment, it really doesn't matter.  For clients that have a reasonable bookkeeping system, I follow their categories, track what they want to track, if they're consistent from year to year.

 

For instance, most of my clients lump their phone, internet, fax, communications, all together, so I just list Telecommunications or similar.  But, I have an S-corp with some remote employees, so owner tracks every phone number, cell, whatever, to see who's just leaving 30-second messages and who's making 20-minute presentations, that kind of thing.  I list all his detail under Telephone/Internet for him and collapse it for the tax return.

[kcjenkins]

Some supplies. Put in supplies but rest is equipment. No line so wondering if I should list each separately to show $500 or under? Or just lump together. Just curious. All works out the same but trying to report properly to not trigger questions.

But if you are using the election, they are NOT equipment now, they are 'supplies', or 'materials', or 'repairs'.  You do not list them separately, you just note in the file the invoices that went into those categories, 

[Lee B]

I like the title "Small Equipment"

[Lion EA]

I'm nervous about the word "Equipment."  I've done "Office Supplies" for things that fit and "Supplies" for the electronics that avoid depreciation with the election.  And, "Small Tools & Supplies"  or "Small Tools & Materials" for a couple businesses that already used those or similar categories.

[jklcpa]

I'm wondering too.  I don't like to use the word "supplies" for these small equipment costs that are now being expensed since supplies now has its own de minimis threshold and rules.  These small equipment or furniture costs aren't really supplies or materials in my mind since those labels connote things that are somehow used up.  For those small tangible property costs formerly capitalized, I'm leaning toward a label that includes "De Minimis"  something-or-another-that-is-descriptive.

[Lee B]

I like the title "Small Equipment"

 

I have restaurant clients. I have been using this description for over 20 years with no problems.

[Jack from Ohio]

I'm wondering too.  I don't like to use the word "supplies" for these small equipment costs that are now being expensed since supplies now has its own de minimis threshold and rules.  These small equipment or furniture costs aren't really supplies or materials in my mind since those labels connote things that are somehow used up.  For those small tangible property costs formerly capitalized, I'm leaning toward a label that includes "De Minimis"  something-or-another-that-is-descriptive.

I would say that there  is a 1 in 500 chance that anyone looks at those descriptions.  I agree with cbslee.  Call it what it is and go forward.