Depreciation commercial garage door

Despite popular belief, the Regulations don't just say $2500 or less is deductible.

It says at the "beginning" of the year, the taxpayer needs to have "accounting procedures" that state they will expense/deduct items $xxx or less for their "book" purposes (and that $xxx amount could be less than $2500).

With that being said, most people's "books" are their checking account, and everything they buy they consider an expense/deduction.  So on that front, they would probably qualify.

However, the Regulation also says "specified dollar amount".  So the taxpayers need to have pre-set that "specified dollar amount" at the beginning of the year.

I realize the IRS would never question that matter (the "accounting procedures" are not required to be written, but I make my clients write it out with a signature and date), but technically, things need to be set up in advance with a "specified dollar amount".

(A) The taxpayer does not have an applicable financial statement (as defined in paragraph (f)(4) of this section);

(B) The taxpayer has at the beginning of the taxable year accounting procedures treating as an expense for non-tax purposes—

(1) Amounts paid for property costing less than a specified dollar amount; or

(2) Amounts paid for property with an economic useful life (as defined in §1.162-3(c)(4)) of 12 months or less;

(C) The taxpayer treats the amount paid for the property as an expense on its books and records in accordance with these accounting procedures; and

(D) The amount paid for the property does not exceed $500 [it was changed to $2500] per invoice (or per item as substantiated by the invoice) or other amount as identified in published guidance in the Federal Register or in the Internal Revenue Bulletin (see §601.601(d)(2)(ii)(b) of this chapter).