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.

View solution in original post

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.

View solution in original post

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)