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David43
Level 2

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

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

 

Solved
Best answer April 14, 2020

Best Answers
john-pero
Community Champion

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

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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3 Comments
john-pero
Community Champion

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

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
Level 2

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

Thank you John-Pero for such a quick response!

Dan Brooks
Level 2

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

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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