I’m not attempting to treat something differently then how the IRS requires... unless I’m understanding the rules wrong?
The property in question need only fit into ONE of these categories to qualify as a material or supply.
My $50 office chair fits the rule of being under $200, thus it is considered a supply.
Am I wrong on that?
“Materials and supplies are tangible, non-inventory property used and consumed in your operations including:
- Acquired components – Costs of components acquired to maintain, repair, or improve tangible property owned, leased, or serviced by you and that's not acquired as part of a larger item of tangible property; or
- Consumables – Costs of fuel, lubricants, water, and similar items that are reasonably expected to be consumed in 12 months or less, beginning when used in operations; or
- 12 month property – Costs of tangible property that has an economic useful life of 12 months or less, beginning when the property is used or consumed in your operations; or
- $200 property – Costs of tangible property that has an acquisition cost or production cost of $200 or less.”
