swaitsandClaude Opus 5.5
ad572ae89d
Stephen asked that specs come from recognized documents, not from anyone's memory. There is no single US bookkeeping bible; authority is layered, and this records it: - docs/spec/sources/: verbatim excerpts (whitespace normalized), each with URL, retrieval date, and the SHA-256 of the fetched file, of public-domain texts: Pacioli's 1494 treatise in Geijsbeek's 1914 translation (double entry, the trial balance, one money, write only forward, correct by opposite entry, close into capital); IRS Pub. 583, 538, 946, 15; the 1099-MISC/NEC instructions (2025 and 2026); 26 U.S.C. §6041, §6041A, §704; Treas. Reg. §1.263(a)-1(f) and -4(f); Notice 2015-82; Rev. Proc. 98-25; Form 1065 instructions; 17 U.S.C. §105. The excerpts were extracted by matching each passage against the fetched file, so none can contain text the source doesn't. - docs/spec/rules.md: the rule catalog, B-1 to B-22. Each rule says AUTHORITY, CONVENTION, or DECISION; cites its sources (FASB's Codification and Concepts Statement 8 and OpenStax quoted briefly, never copied: copyright and CC BY-NC-SA); and names the code that enforces it and the tests and proofs that check it. - Spec blocks in the code now carry SOURCE: lines into the catalog; AGENTS.md makes sourcing rule 0 of the formal-methods bar. Corrections the sources turned up: the de minimis limit is $500 in the regulation and $2,500 by Notice 2015-82 (both now cited); 1099 thresholds after 2026 are inflation-indexed, so the engine's flat $2,000 for 2027+ is an open question (B-19). Unverified ASC paragraphs (360-10-35-4, 340-10, 230-10-45-10, 606-10-55-37B, 210) are listed in docs/spec/README.md until someone with a FASB basic-view login reads them. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01GWVo7x3UHw5kwCUaWxiejX
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Expense or capitalize: the de minimis safe harbor and the 12-month rule
Governs the books' materiality policy (Wanderland's AGENTS.md) and prepaid-expense schedules. Note the dollar limit: the regulation says $500 for a taxpayer without an applicable financial statement; Notice 2015-82 raised it to $2,500 for taxable years beginning on or after January 1, 2016. The election is made yearly on the return.
Treas. Reg. §1.263(a)-1(f)(1)(ii)
Source: https://www.ecfr.gov/current/title-26/part-1/section-1.263(a)-1
Retrieved: 2026-10-13
SHA-256 of the retrieved file (ecfr263a1.txt): ec4f68a4aadc00807ea7e2f55ae6340d0cadd2d8866c0940e851e34d7771abed
Taxpayer without applicable financial statement. A taxpayer electing to apply the de minimis safe harbor may not capitalize under § 1.263(a)-2(d)(1) or § 1.263(a)-3(d) nor treat as a material or supply under § 1.162-3(a) any amount paid in the taxable year for property described in paragraph (f)(1) of this section if— (A) The taxpayer does not have an applicable financial statement (as defined in paragraph (f)(4) of this section); (B) The taxpayer has at the beginning of the taxable year accounting procedures treating as an expense for non-tax purposes— (1) Amounts paid for property costing less than a specified dollar amount; or (2) Amounts paid for property with an economic useful life (as defined in § 1.162-3(c)(4)) of 12 months or less; (C) The taxpayer treats the amount paid for the property as an expense on its books and records in accordance with these accounting procedures; and (D) The amount paid for the property does not exceed $500 per invoice (or per item as substantiated by the invoice) or other amount as identified in published guidance in the Federal Register or in the Internal Revenue Bulletin
Notice 2015-82, I.R.B. 2015-50
Source: https://www.irs.gov/irb/2015-50_IRB
Retrieved: 2026-10-13
SHA-256 of the retrieved file (irb.txt): d08df482a882a7b08484df28686c7ee9bafa3e00c705acbe031b1dbf880295e1
This notice increases the de minimis safe harbor limit provided in regulations § 1.263(a)–1(f)(1)(ii)(D) for a taxpayer without an applicable financial statement from $500 to $2,500.
This Notice is effective for costs incurred during taxable years beginning on or after January 1, 2016.
Treas. Reg. §1.263(a)-4(f)(1): the 12-month rule
Source: https://www.ecfr.gov/current/title-26/part-1/section-1.263(a)-4
Retrieved: 2026-10-13
SHA-256 of the retrieved file (ecfr263a4.txt): da643efdbd84756e67e6a88c7bdee8daae653c420d8252b92d4fe19ae539339a
In general. Except as otherwise provided in this paragraph (f), a taxpayer is not required to capitalize under this section amounts paid to create (or to facilitate the creation of) any right or benefit for the taxpayer that does not extend beyond the earlier of— (i) 12 months after the first date on which the taxpayer realizes the right or benefit; or (ii) The end of the taxable year following the taxable year in which the payment is made.