A contractor buys a $2,400 laptop, a $600 printer, and $150 of paper. Which is most likely expensed immediately rather than capitalized?
Explanation
Paper is consumed in the period it is bought and is an ordinary deductible expense under IRC §162, so it is expensed rather than capitalised. The laptop and the printer are property with a life beyond the year and are capital items, although the de minimis safe harbour in 26 CFR §1.263(a)-1(f) or a §179 election commonly lets a small business expense items of this size anyway. Treating all three as five-year property ignores both the consumable and the safe harbour.
Law Reference: IRC §162; 26 CFR §1.263(a)-1(f)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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