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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I started a business in 2009 and Im not quite sure what category

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I started a business in 2009 and I’m not quite sure what category to put some of my expenses in on my Schedule C. I make handcrafted soaps and body care products. During 2009 I purchased a number of soap molds and various tools that I use for production. These are inexpensive items ranging in cost from $1 to $20, but they add up to a total of a few hundred bucks. Given the price range of these items, can I expense them as supplies or do I have to go the Section 179 route since technically they are likely to last more than a year?

Hello JA Customer,

 

The threshold rule allows a business to claim an immediate deduction for most business expenditure of $100 or less to buy tangible assets.

 

The rule is meant to help businesses save time because they do not need to decide whether each purchase is of a revenue nature (and so immediately deductible) or of a capital nature (which is usually written-off over time).

 

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Thank you JA Customer

 

 

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