A taxpayer elects to take a bunch of different assets which would normally be capitalized and instead deduct them as expenses using the de minimis rule for tangible property under IRC Section 263A. They are able to expense $7,500 in equipment this way. How should this be handled on the State return for California?
A taxpayer elects to take a bunch of different assets which would normally be capitalized and instead deduct them as expenses using the de minimis rule for tangible property under IRC Section 263A. They are able to expense $7,500 in equipment this way. How should this be handled on the State return for California?
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 1DQ
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Transcribed Image Text:A taxpayer elects to take a bunch of different assets which would normally be
capitalized and instead deduct them as expenses using the de minimis rule for
tangible property under IRC Section 263A. They are able to expense $7,500 in
equipment this way. How should this be handled on the State return for California?
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