Where do I Report De Minimis Sales

Although the Repair Regulations are more than 10 years old, it took us a while to know where to report sales

Photo by Lydia Torrey on Unsplash

The IRS issued repair regulations at least 10 years ago. The new regulations allow farmers (and other businesses) to elect on an annual basis to expense items that would otherwise be required to be capitalized and then depreciated. This is known as the de minimis election.

For most farmers, the original amount allowed to be expensed was only $500, but the final regulations increased this to $2,500 per item. An invoice can exceed this amount, but if each individual item on the invoice is less than $2,500, then all of those items can be expensed.