Equipment or Supplies Expense

June,

Thanks so much for the info. Lots of great stuff in there.My only question for now is: Does equipment have to cost over $200 to deduct it as a business expense?

Thanks again,
Chuck


Hi Chuck,

You are welcome.

If you purchase something for business that lasts longer than a year it's considered an EQUIPMENT expense. But realistically, what about a $10 stapler? That lasts longer than a year but does it make sense to depreciate it over 7 years? Nope. So we set up an arbitrary limit of $200. Anything less than $200 is a SUPPLIES expense.

Best,
June