Easier Business Write-offs for 2013

The IRS has increased the previous ceiling of $100 to $200 for 2013 for low-cost material and supply write-offs for businesses. That will make it easier to expense those small items instead of having to depreciate those little expenses over multiple years. You can also elect to apply that higher amount to 2012 as well if you happen to be late in filing. It probably wouldn’t pay to amend if you chose to depreciate those items in 2012.

In addition, if your business has a written policy and certified financial statements which allow for the deduction of non-supply items costing less than $5000, that would be allowed up to the amount in the policy.

Those business without audited statements are limited to $500 in non-supply items.

And of course, don’t forget that often items can be fully expensed using the 179 deduction, a form of depreciation which allows for a full write-off (up to $250,000 per year limited by profits).


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