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@Golfer2016 wrote:

I think it may be best for businesses to take the annual election, but sign a smaller requirement, like $250. 

 

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The 'default' rule is that if you DON'T make the De Minimus Election, then items $200 and less are deducted.  Items over $200 are usually depreciated (larger businesses may be more flexible with that).

The threshold for the De Minimus election is based on the taxpayer's "accounting procedures" at the beginning of the year for their 'books'.  So if their "procedure" for their 'books' is to deduct items $500 and less and depreciate items over $500, then the De Minimis threshold is $500.   Many small small taxpayers really don't consider depreciation, so in their mind everything is deducted.  In that case, you use $2500 as the threshold (personally, I have the taxpayers sign something in regards to that).