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Level 1

Are low cost computers and IT related items still considered Assets?

In the past, computers were considered assets when they cost a couple thousand dollars and lasted for years, but now, I buy refurbished laptops for my business for under $500. They last a year or two, then I part them out to use to fix other computers. To me, computers are almost like a tool or even an office supply.

 

Are they still assets?

 

If so, what account would I use to track low cost computers and parts used in the operation of the business?

 

Thank you

1 Comment
Community Champion

Are low cost computers and IT related items still considered Assets?

While technically still assets, you can directly write off assets as expenses if they fall within the Safe Harbor deMinimis guidelines which now state that any total purchase or identifiable line item (of certain types of items that include computers and printers and other appliances) inclusive of shipping and sales tax up to $2500 each can be written off.  You should still record the purchase individually as your tax CPA will report these on the 4562 depreciation schedule as an allowable expense.

 

Add an expense account under Office Expense for Computers

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