What determines if an asset is capitalized or expensed?
The cost basis and useful life of an asset are the determining criteria of a capital / expensed asset. Any asset that falls under 2 years and $5000 is treated as an expensed asset; anything that is above that threshold is capitalized. This means any asset, including computers; costing less than $5000 and having a useful life less than 2 years would have a profile associated with it that starts with an “E” (i.e., ECOMPUTERS).
