Tinting Windows

[oceanlovin'ea]

Client had windows tinted in room that is used for office. Cost was $231. Does this have to be depreciated?

I know it becomes part of the house when attached to windows. Just such a small amount to depreciate over 31 1/2 years.

Linda F

[ecb34691]

Where do you get 31 1/2 years? Should be 39 years. But for such a small amount, I'd probably just expense it.

[Snaggletooth]

Capitalization Threshold

Linda I would have a capitalization limit for stuff like this. For most of my customers, I would use $200 on Office Equipment, General Equipment, and $500 for Building Improvements. IRS doesn't care that you expense a $231 item because they know the alternative is page after page after page of asset listings.

Occasionally you will find someone in IRS who gets off on finding small, piddly items. When I run into someone like that I tell him to go ahead and write it up -- and if I have a few small item in the customer's favor, I throw them in, too. For example, if he insists on capitalization, I also insist on adding a depreciation deduction of $231/39 for all other years under audit. (Like $6 per year) When faced with half-a-days' work and virtually no money, he backs off quick.

[veritas]

expensing

I would expense also. As far as equipment it doesn't matter much since you can expense it anyhow under Sec. 179.

[oceanlovin'ea]

Thanks

everyone for your answers. I really felt like expensing it and appreciate all your responses.

Linda F