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Equipment Acquisitions

Costs that are directly attributable to asset acquisition, such as freight and transportation costs, site preparation costs, installation costs and professional fees, that are necessary to place a capital asset into its intended state of operation. Ancillary costs are capitalized as part of the cost of a capital asset. 

Tangible property other than land, buildings, improvements other than buildings, or infrastructure with a unit cost (including ancillary costs) of $5,000 or more which is used in operations and with a useful life of more than one year.  Equipment may be attached to a structure for purposes of securing the item, but unless it is permanently attached to, or an integral part of, the building or structure, it is to be classified as equipment and not buildings.  

Tangible property other than land, buildings, improvements other than buildings, or infrastructure with a unit cost (including ancillary costs) of less than $5,000 which is used in operations and with a useful life of more than one year.  Non-inventorial equipment is not capitalized. For more information on tagging and tracking non-inventorial equipment, please go here.

Unit cost is the purchase price or fair market value of one piece of equipment and can include ancillary costs such as calibration, installation, freight, trade-in, and sales and excise tax.