• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 30 years!

    Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered 24 hours a day!
  • TUG started 30 years ago in October 1993 as a group of regular Timeshare owners just like you!

    Read about our 30th anniversary: Happy 30th Birthday TUG!
  • TUG has a YouTube Channel to produce weekly short informative videos on popular Timeshare topics!

    Free memberships for every 50 subscribers!

    Visit TUG on Youtube!
  • TUG has now saved timeshare owners more than $21,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $21 Million dollars
  • Sign up to get the TUG Newsletter for free!

    60,000+ subscribing owners! A weekly recap of the best Timeshare resort reviews and the most popular topics discussed by owners!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    All T-shirt options here!
  • A few of the most common links here on the forums for newbies and guests!

IRS:Taxpayers May Immediately Deduct The Purchase of Assets Costing Less Than $2,500


TUG Member
Jun 6, 2005
Reaction score
Resorts Owned
IRS:Taxpayers May Immediately Deduct the Purchase of Assets Costing Less Than $2,500 - by Tony Nitti/ Forbes/ Taxes/ forbes.com

"Lost among the administrative and technical complexities of the “repair regulations” was the occasional bit of good news.

For example: for years, taxpayers have fought with IRS examiners about whether the cost of certain small assets may be immediately deducted, or if instead, the cost must be capitalized and depreciated.

At the heart of the issue was the question of “materiality:” the taxpayer complained that the cost of the asset was so insignificant that to capitalize and depreciate the asset caused more headaches than anything else, while the IRS traditionally countered with the (absolutely correct) argument that there is no such thing as materiality when it comes to asset purchases.

If the asset has a useful life that extends beyond the end of the year of purchase, the IRS asserts, Section 263 requires the taxpayer to capitalize the cost and depreciate the asset, regardless of the purchase price.

This led to long and painful arguments between the IRS and taxpayers that, quite frankly, both sides grew weary of. As a result, when the repair regulations were finalized in August 2013, they included a “safe harbor” that would put an end to the majority of these battles..."