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David43
April 14, 2020
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Recording fixed asset improvements (e.g. memory for a computer)

  • April 14, 2020
  • 1 reply
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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

 

    Best answer by john-pero

    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. 

    1 reply

    john-pero
    john-peroAnswer
    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. 

      D
      David43Author
      April 14, 2020

      Thank you John-Pero for such a quick response!

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