Recording fixed asset improvements (e.g. memory for a computer)

David43 · ‎April 14, 2020

Hi,

How should I record purchases that improve a fixed asset (e.g. memory for a computer) that I bought in a previous year?

In my case the computer has been entirely depreciated before I bought the memory.

Thank you,

David

john-pero · ‎April 14, 2020

Office SUPPLIES, which is basically where you COULD have recorded the computer, as long as it cost less than $2500. Safe Harbor de minimis rules allow direct expensing of certain hardgoods that are not permanently attached to or improve an actual building. Computers are portable, with the exception maybe of a 50 year old IBM 360. They do not have to be recorded as fixed assets and as such any later "improvements" are not to an asset but just for operations.

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john-pero · ‎April 14, 2020

Office SUPPLIES, which is basically where you COULD have recorded the computer, as long as it cost less than $2500. Safe Harbor de minimis rules allow direct expensing of certain hardgoods that are not permanently attached to or improve an actual building. Computers are portable, with the exception maybe of a 50 year old IBM 360. They do not have to be recorded as fixed assets and as such any later "improvements" are not to an asset but just for operations.

David43 · ‎April 14, 2020

Thank you John-Pero for such a quick response!

Dan Brooks · ‎April 14, 2020

John,

I just want to thank you for being willing and able to freely answer so many questions.

Most sincerely,

DB

@john-pero wrote:
Office SUPPLIES, which is basically where you COULD have recorded the computer, as long as it cost less than $2500. Safe Harbor de minimis rules allow direct expensing of certain hardgoods that are not permanently attached to or improve an actual building. Computers are portable, with the exception maybe of a 50 year old IBM 360. They do not have to be recorded as fixed assets and as such any later "improvements" are not to an asset but just for operations.

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Recording fixed asset improvements (e.g. memory for a computer)