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Current for 2026 Tax Year · Treas. Reg. § 1.263(a)-1(f)

De Minimis Safe Harbor ($2,500 Rule) Asset Evaluator.

Explore educational expensing and depreciation scenarios for entered acquisition facts; review eligibility, timing, and elections with your CPA.

1. Asset invoice details

This model requires a separately stated per-item amount

2. Educational tax scenario — CPA review required

Modeled Immediate Expensing (Year 1)

Modeled De Minimis Scenario — CPA Review Required

This initial illustration models an entered $1,850 amount against a $2,500 threshold. Deductibility, itemization, elections, and form placement require CPA review.

Modeled Year 1 Expense$1,850.00Modeled full-cost expense; CPA review required
Modeled Tax Effect$444.00At 24% marginal federal rate
Illustrative Election TemplateCPA Review Required

Under Treas. Reg. § 1.263(a)-1(f), review whether to attach this illustrative election statement with your CPA to your timely filed tax return:

DRAFT FOR CPA REVIEW — NOT FILING-READY
Section 1.263(a)-1(f) De Minimis Safe Harbor Election
Taxpayer Name: [Your Name / Entity]
Tax Year: 2026
The taxpayer hereby elects the de minimis safe harbor under Treasury Regulation § 1.263(a)-1(f) for all qualifying amounts paid during the taxable year.

How the Displayed $2,500 Scenario Works

This educational example compares current-year review with 5- or 7-year depreciation concepts for small purchases such as smart locks, blenders, and bedside tables. Applicable treatment and Form 4562 reporting require CPA review.

The model illustrates a possible De Minimis Safe Harbor Election under Treasury Regulation § 1.263(a)-1(f); eligibility, accounting policy, consistency, and filing treatment require CPA review:

  • Per Item or Invoice Scenario: The model compares a $2,500 threshold with separately stated amounts, including four $800 mattresses on one $3,200 invoice. It does not determine whether an item qualifies or may be expensed.
  • Disposition Review: Expensing, depreciation, and later disposition treatment depend on the approved tax treatment and facts. This model does not calculate Section 1245 recapture.

When Might an Asset Require Depreciation Review?

The selected category and amount do not establish eligibility for the displayed $2,500 scenario:

  • Capital Improvement Review (BAR concepts): A new roof, full plumbing repipe, or central HVAC replacement can require capitalization analysis. This model uses a 27.5-year structural scenario but does not determine treatment.
  • Amount Above the Displayed $2,500 Threshold: The model sends a $4,000 personal-property example to a 60% bonus and 5-year scenario. Eligibility, class life, rate, convention, and election require CPA review.
Related Resources:

Review supported asset records

Review asset candidates with source evidence.

Roxby flags asset candidates for review and retains user/CPA-approved schedules and source evidence; it does not choose tax elections.