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Mercavitch family of Exeter promotes joy and touches community with elaborate Christmas decor

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St. Robert’s youth observe All Saints Day

Thinking of buying a new computer for your small business next year?There&#8217;s a good chance you will be able to write the cost off as a business expense.Earlier this month the IRS upped the amount that businesses can expense for certain capital items from $500 to $2,500 under the de minimis safe harbor provided in Reg. &#167;1.263(a)-1(f).For example, if your company purchases a $1,500 laptop, you can deduct the cost as a business expense instead of having to depreciate it over a set time, according to Camp Hill-based Boyer &amp; Ritter, CPAs and Consultants.Though the new $2,500 limit is effective Jan. 1, 2016, the IRS has said it will not challenge purchases dating back to Jan. 31, 2011 as long as they do not exceed the new limit and meet all other requirements for using the safe harbor, including a capitalization policy indicating their de minimis amount in place as of the beginning of the year, Boyer &amp; Ritter said in a news release.A safe harbor is a provision that gives the taxpayer protection from penalties or reduces liability if certain conditions are met.Previously, the de minimis safe harbor amount for small capital items was $500. In announcing the change, the IRS said it was responding to comments that the amount was too low to effectively reduce the administrative burden of capitalizing the cost of many commonly purchased items such as computers, smart phones, machinery and equipment parts.The regulatory change does not impact firms that file an applicable financial statement (AFS), which is usually an audited financial statement. For these typically large companies, which are required to have a written capitalization and expense policy, the existing safe harbor amount of $5,000 per item remains in effect.<div class="metaInfo"><bylineMeta>By Times Leader Stafftlnews@www.timesleader.com</bylineMeta></div><div class="metaInfo"><shirttailMeta>Reach the Times Leader newsroom at 570-829-7242 or on Twitter @TLnews.</shirttailMeta></div>

The IRS has an early Christmas present for you and your small business