IRS raise de miminis safe harbor limit from $500 to $2,500.

• Author: Josephs, Stuart R.
• Position: FED TAX UPDATE

Background: Regs Sec. 1.263(a)-1(f)(1)(ii)(D) provides a 1500 de minimis safe harbor limit for taxpayers without an applicable financial statement (AFS) to expense items under the tangible property "repair" regulations (see the June 2015, California CPA, Page 23).

Rev. Proc 2015-20 requested comments on increasing this $500 limit. The IRS received more than 150 letters suggesting an increased limit, including letters from CalCPA and the AICPA.

New Development: IRS Notice 2015-82 (IRB 2015-50, Dec. 14, 2015) increases this limit from $500 to $2,500, effective for costs incurred during tax years...