CapEx What to Know
Capitalize if:
Expense if:
Aggregate Purchases (De Minimis): • An aggregate group of like items where each item ≤ $1,000 and the group total > $1,000 • Case by case basis • Items MUST be necessary for hotel operations • Examples • Sconces, Chairs, Tables, Safes, etc. • Televisions and mini fridges • Shelving, luggage carts, housekeeping carts
• Asset life > 1 year AND cost > $2,500, OR • Extraordinary repair ≥ $2,500 that extends useful life or increases capacity, OR • Improvement project ≥ $5,000, OR • Renovation FF&E (likely capital, subject to tax review)
• Life ≤ 1 year, or • Cost below thresholds and not part of an improvement/renovation project, or • Item is on the “always expense” list (linens, china, smallwares, etc.), or • Repair doesn’t extend life beyond 1 year, regardless of cost.
Made with FlippingBook flipbook maker