# De minimis safe harbor

> De minimis safe harbor — An annual tax election to deduct, rather than capitalize, tangible property costing up to $2,500 per invoice or item — $5,000 with an applicable financial statement — provided the books expense the same amounts under an accounting policy in place at the start of the year.

Source: https://lopifi.com/glossary/de-minimis-safe-harbor
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is de minimis safe harbor?** In accounting, de minimis safe harbor means an annual tax election to deduct, rather than capitalize, tangible property costing up to $2,500 per invoice or item — $5,000 with an applicable financial statement — provided the books expense the same amounts under an accounting policy in place at the start of the year.

## Words this system refuses for it

- capitalization threshold (the book policy it relies on)

- **Category:** Tax
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** statement, expense, invoice