Some prepaid expenses are specifically excluded from the prepayment rules. You don’t have to apportion them and you can deduct them immediately, even if the expense does not meet the 12-month rule or you’re not a small business. The most common are for amounts of less than $1,000 and amounts required to be incurred by a court order or law of the Commonwealth, state or territory. An example is amounts that the law or a court order need you to pay, for example, registration of a vehicle.