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Are repairs to office equipment an expense?

Author:
Harold Averkamp, CPA, MBA

Repairing and maintaining office equipment is an immediate expense. This is true even if the repair cost is a very large amount.

If a large expenditure is made to improve office equipment, that cost would be recorded as an asset and then depreciated over the remaining life of the equipment.

Small expenditures to improve office equipment are usually expensed immediately because of the materiality concept. This means the amount is so small that no one will be misled by having the entire amount appear immediately as an expense rather than appearing as depreciation expense over several years. Often improvements of less than $500 or $1,000 are considered immaterial and are expensed immediately.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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