A term used meaning ‘of little to no value’. It is often used in the business world when referring to the Internal Revenue Service issues. In general, the IRS defines this as approximately $500 when referring to capital expenditures and $10,000 or less when referring to life insurance proceeds. The key to the term is that the IRS is choosing reduced paperwork over any marginal tax revenue, i.e. cost to include is greater than benefit derived.
The Internal Revenue Service uses a complex definition to identify capital expenditures (assets). A capital expenditure is not deductible as an expense in the tax year purchased; the taxpayer or entity must use depreciation, amortization […]