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Community Contributor **

Classify material purchase in order to sell a service

Hi,

I own a dive center. I sell dive as a service. I'm not sure which account should i register my expenses when i buy diving gear (BCD, wetsuit, fins, masks...) that will be used to provide the dive service. 

Thanks for your help. 

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Best answer 05-11-2019

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Established Community Backer ***

Re: Classify material purchase in order to sell a service

In the US the IRS set what is called a de minimus amount for what could be listed as an asset but can be expensed, that amount is $2,500.

The items you mentioned wear out, sometimes quickly, I would expense them when purchased using shop supplies expense

Tanks and regulators though, I would purchase as an asset, probable a fixed asset.

1 Comment
Established Community Backer ***

Re: Classify material purchase in order to sell a service

In the US the IRS set what is called a de minimus amount for what could be listed as an asset but can be expensed, that amount is $2,500.

The items you mentioned wear out, sometimes quickly, I would expense them when purchased using shop supplies expense

Tanks and regulators though, I would purchase as an asset, probable a fixed asset.

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