qbteachmt
Level 15

I always have to research IRS against any internal policy for the client I am working with. The final regs that got issued were supposed to help clarify and simplify from the mishmash that existed prior to this (I have my notes dated from 2014 proposals to finals). I try to apply safe harbor when something else, such as GASB/FASB, won't apply. For example, I worked with someone that had a $1,000 policy limit and I got their board to raise that to $3,000. Plenty of repairs bump against $3k, nowadays. You seem to be learning about an Annual Election:

https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#Wh...

"You make the election to use the safe harbor for each taxable year in which qualifying amounts are incurred.

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