The One Big Beautiful Bill didn’t just overhaul big-ticket items like bonus depreciation and QSBS — it also quietly upgraded one of the most powerful small-business deduction tools: the de minimis safe harbor under Reg. §1.263(a)-1(f).
What Changed?
The de minimis safe harbor threshold — the rule that lets you expense small purchases upfront instead of capitalizing them — is now indexed for inflation starting in 2025.
Old Rule (unchanged):
$2,500 per item (if you don’t have audited financials)
$5,000 per item (if you do)
New Enhancement:
Starting in 2025, these thresholds will automatically adjust upward each year for inflation (starting with 2026 returns).
Why It Matters
Under the old rule, a $3,000 office printer would have to be capitalized and depreciated over 5 years (unless you met the $5,000 audit threshold).
Now? You’ll be able to expense more purchases instantly — without the paperwork or depreciation schedules.
That means:
Laptops
Monitors & tablets
Office furniture
Specialized equipment for trades, clinics, salons, etc.
Internal-use software under $X threshold (pending guidance)
…can all qualify as immediate deductions.
Who Should Use This?
Startups buying lots of tech gear
Service businesses upgrading tools or software
Real estate professionals buying staging, signage, or equipment
Retailers & salons doing frequent small improvements
Construction contractors purchasing tools or admin tech
Strategic Angle: “Don’t Miss the Easy Deductions”
Most small businesses already spend thousands on qualified items — but many either:
Miss the safe harbor election
Or don’t have a clear accounting policy in place
To use the safe harbor, you must:
Have a consistent written accounting policy in place at the beginning of the year
Elect the safe harbor annually on your tax return (no formal IRS approval required)
Example: How It Works
Let’s say your business buys:
$2,700 laptop
$2,200 client seating setup
$1,850 camera for marketing videos
In total: $6,750
With the indexed de minimis threshold, you deduct the full $6,750 immediately — no depreciation, no Form 4562 hassle. Just clean, easy deductions that reduce your taxable income right now.