[titoav15]

Kinda of topic… does anyone know what the capitalization threshold should be for determination of FA, this is a Small business diner. When I did my research it seems like anything over $500 should be capitalized.

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[Missy]

It depends on a lot of factors but there is no “magic number”. Could be anything over $500, or $1000 or $3000 even for a small business. Usually when trying to decide for a business they consider the financial impact, the volume of purchases above that threshold and the recordkeeping involved to track the depreciation.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Peterman25]

It appears that $500 is the tax de minimis amount. So, applying the $500 amount would help coincide book and tax records possibly making record keeping a bit easier. Then again…how often is a small business diner buying assets over $500?

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[Author]

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