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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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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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