Definition:
The term de minimus is generally used to describe something that is too small or insignificant to be considered, something unimportant; the term comes from a Latin phrase, "de minimis non curat lex," the law does not deal with trivial matters. From a tax standpoint, a de minimus is a small amount not subject to taxation.
For example:
- On Form 1099-S, Proceeds from Real Estate Transactions, a transfer of less than $600 is considered de minimus.
- A gift to an employee of less than $50 is considered de minimus.
