Items such as notebooks, pens, etc. would normally be classified as office expenses, and would not be capitalized (subject to depreciation or to a Sec 179 write off). Although the IRS does not have an offical "de minimus" amount that should be capitalized as an asset, many businesses won't capitalize anything costing less than $100. In other words, they write it off immediately.

Since the Sec 179 amount you can write off, subject to an income limitation, is $100,000, we advise that when in doubt, capitalize the item as an asset, and then elect Sec 179 expensing. Most individual taxpayers don't have any where near $100,000 of new assets, and consequently can take full advantage of the Sec 179 write off. If the IRS comes along and discovers something you should have capitalized, but didn't, they have generally not permitted taxpayers to make the Sec 179 election on such assets.

Gary

Zip Code: garyd@davisandbrandel.com