capitalization

[bjsbrown65]

Will someone give me some guidance of what your church uses as a capitalization limit - i.e. when items are classified as fixed assets vs expenses. Also if more than one item is purchased, do you look at the total or the price per item when determining if it is above or below the limit. Thank you. Our accountant is not available right now.

[JohnDMeyers]

I'm not aware of any legal limitations on a maximum dollar amount.

When you expense an item or items, it appears on your income and expense statement.

When you capitalize an item, it appears on your balance sheet.

There are pluses and minuses to either.