office equipment vs office supply

Posted on 2010-09-21
Medium Priority
Last Modified: 2013-12-11

How can differentiate office equipment vs office supply.
We are trying to reorganize our quickbooks accounts but looks like they been using either one in the past.
Should be a rule
for example
keyboard should it be an office supply or office equipment,
is the a minimun price rule or how can we do this
please explain

Question by:titorober23
  • 3
  • 3

Assisted Solution

SBA_Services_AZ earned 500 total points
ID: 33729665
You should really check with your Tax Professional for this. (I am NOT a CPA)

When setting up QB, I typically suggest to my clients to think of a Supply as anything that you use, deplete and re-order. So, for your example, a Keyboard would be Equipment as it is not depleted when used. Batteries to go into a wireless keyboard however, would be a Supply.

Author Comment

ID: 33733472
That's how i think about it.
But i heard about  a rule that if you spend more than $500 for single supply it becomes an equipment.
please comment

Expert Comment

ID: 33735970
technically it would be an Office Equipment Asset if a SINGLE item costs more than $500.00.  With that being said, it really depends on the bottom line whether you take a Section 179 deduction in the current year for the full amount or depreciate it.  

I suggest creating an expense account called Equipment Purchased and any office equipment – printers, computers, etc – go there.  Then my accountant makes the decision at the end of the year whether to depreciate it or leave it as an expense, but at least everything is in one account.

Not many actual supply items would cost that much so you would still need to keep the use, deplete, re-order part in mind as well.

There will always be "one off's" that can't be cover in general questions. This is why I suggest working with a tax professional/accountant for those types of questions.
Get expert help—faster!

Need expert help—fast? Use the Help Bell for personalized assistance getting answers to your important questions.


Author Comment

ID: 33757099
items that cost more than $300 or $500 are most likely equipments, I am asking if there is a rule to differenciate one from the other.

Accepted Solution

SBA_Services_AZ earned 500 total points
ID: 33758862
Other than the information I have already provided, the are no "rules" to separate supplies vs equipment. If you are looking to set something up for your business and don't feel those are enough to go by, then again, talk to your tax professional.

Author Closing Comment

ID: 33855584

Featured Post

Get your problem seen by more experts

Be seen. Boost your question’s priority for more expert views and faster solutions

Question has a verified solution.

Are you are experiencing a similar issue? Get a personalized answer when you ask a related question.

Have a better answer? Share it in a comment.

Join & Write a Comment

If you’re using QODBC to update QuickBooks data from Microsoft® Access but Access is not showing the updated data, you could have set up QODBC incorrectly.
Quickbooks hosting can do wonders to your enterprise but considering the points elaborated in the article which will help you to better analyze the outcomes. So scan your business, its needs and then move to the new world of limitless benefits.
Watch the video of Kernel Migrator for SharePoint, which demonstrate the process easily of migration from SharePoint to SharePoint, OneDrive for Business & Google Drive servers, Public Folder to SharePoint, File Server to SharePoint. The tool has va…
In the video, one can understand the process of resizing images in single or bulk. Kernel Bulk Image Resizer is an easy to use tool for resizing large number of images. One can add and resize multiple images with this tool in single go. The video sh…

624 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question