titorober23
asked on
office equipment vs office supply
Hi
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
thanks
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
thanks
SOLUTION
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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.
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.
ASKER
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.
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ASKER
thanks
ASKER
But i heard about a rule that if you spend more than $500 for single supply it becomes an equipment.
please comment