"This important step simplifies taxes for small businesses, easing the recordkeeping and paperwork burden on small business owners and their tax preparers," IRS commissioner John Koskinen said in a prepared statement.

The threshold applies to amounts spent to acquire, produce or improve tangible property that would normally qualify as capital items. Businesses can still claim deductible repair and maintenance costs, even if they exceed $2,500. The agency said it received many comments that the cost of many commonly expensed items are greater than $500, espcially for computer and communications devices.

The IRS says it will provide audit protection by not challenging use of the new threshold in tax years earlier than 2016. For taxpayers with financial statements, the de minimis or small-dollar threshold remains $5,000.

More information can be found at in Notice 2015-82, posted on IRS.gov