Don’t wait! Now is the time to put your 2018 safe harbor de minimis expensing election in place.
Why is it so important to act promptly?
Because making the safe harbor election in 2017 for 2018 can save you a lot of money and make your life much easier.
You see, the safe harbor election eliminates the burden of:
- Tracking small dollar-cost assets
- Depreciating and/or Section 179 expensing them in your tax returns and books of account
- Making sure to remove them from your books when you remove the assets from your business.
Want to learn how to come out a winner? Read my new article titled Tax Tips: Act Now! Get Your 2018 Expensing in Place.
Here’s a quick look at just some
of the important information we’ve got waiting for you…
Step #1: Create an expense policy and stick to it. For safe harbor protection, you must have an accounting policy in place. This requires the expensing of an amount of your choosing (up to a limit we’ll explain). This policy must be in place at the beginning of the tax year. All will be explained when you read the full article.
Step #2: Put your expense policy in writing. This is extremely important. Don’t wait. Create your written policy now. We’ll provide language you can use when you read the full article.
Step #3: Save all your invoices. The safe harbor applies only to items documented by invoices. Your invoices prove you made the purchases you claim and your cancelled checks or credit-card charges prove you paid the money. You’ll get all the details when you read the full article.
Step #4: Make the safe harbor election on your tax return. You have to make the election on your tax return every year you want to use the safe harbor. To make the election, all you have to do is attach a statement to your federal tax return and file that return by the due date (including extensions). We’ll provide language you can use for your safe harbor election when you read the full article.