Currently, the level at which individual items are capitalized and depreciated for financial reporting purposes is $10,000. This level was increased from $5,000 effective July 1, 2008.
If the amount of a single item is less than the $10,000 threshhold, but the aggregate cost of a quantity of the same items being purchased exceeds $10,000, then the items should be capitalized as a group, provided the items are to be used for a single project (i.e. computers purchased for a computer lab). A single purchase of a quantity of items with a total cost in excess of $10,000 to be used in multiple locations should not be capitalized (i.e. computers purchased for several offices).
