Fixed Assets Overview

For checkoff purchases of equipment, furniture and/or fixtures with an estimated useful life of more than one year and with a cost of $2,500 or more per item, the expenditures will be recorded as a capitalized expense and depreciated using the straight-line method, which is the allowable method as a not-for-profit, tax-exempt organization. Under the straight-line method of depreciation, the basis of an asset (the cost to purchase and all other costs required to place the asset in service) is recognized in equal monthly increments over the life of the asset. The asset is depreciated based on the asset class, which has an associated common class life.