| Return Reference | Explanation |
|---|---|
| Other Expenses.1001 | Advertising and Promotion $500 |
| Other Expenses.1007 | Conferences, Conventions, and Meetings $5774 |
| Other Expenses.1 | FUNDRAISING $11802 |
| Other Expenses.2 | CONTRIBUTIONS $11522 |
| Other Expenses.3 | SUPPLES $8124 |
| Other Expenses.4 | STATE PBA FAMILY CARDS $1740 |
| Other Expenses.5 | DUES & SUBSCRIPTIONS $1097 |
| Other Expenses.6 | TROPHIES AND AWARDS $500 |
| Other Expenses.7 | LICENSES & PERMITS $130 |
| Other Expenses.8 | BANK CHARGES $129 |
| Statement Note 1 | Capitalization policy Adoption Date January 1,2014Purpose: This capitalization policy is being adopted for book purposes in consideration of and pursuant to Internal Revenue Service (IRS) imposition of finalized Tangible Property Regulations (TPR) (Reg. 1.162-3, 1.162-4, 1.263(a)-2, 1.263(a)-3, TD 9636, 2013-43 IRB 331,78 Fed. Reg. 5786) and pertains to amount paid to acquire, produce, or improve tangible property. This policy is intended to conform to the regulations as a means of distinguishing capital expenditures from supplies, repairs, maintenance, and other deductible business expenses. I. Materials & Supplies A. Defined as:1. Component parts to maintain, repair or improve real property2. Fuel, lubricants, water- to be consumed in 12 months or less3. Units of property costing $2,500 or less (Safe Harbor election is to be considered annually for tax purposes. If this election is NOT made annually, then the threshold is reduced to $200 for tax purposes)4. Units of property with useful life of 12 months or lessB.Expensed when paid if incidental (if cash basis) provided income is clearly reflected- i.e. carried on hand and no record of consumption or physical inventoryC.Expensed when used in non-incidental and not de minimis ($2,500 or less).(De Minimis Safe Harbor is to be considered annually for tax purposes).II. Costs that must be capitalized: costs resulting in A.Betterments-1. Corrects pre-acquisition or production defect2. Material addition3. Reasonably expected to increase capacity, productivity, efficiency, etc.B. Adaptations- to a new or different useC. Restorations1. Replace component of unit of property where deducted loss for that component, or sold that component and recognized gain or loss2. Returns a unit of property to operating when deteriorated and no longer functional for its intended use 3. Rebuilding of unit of property to like-new after the end of its class life4. Replacement part(s) that comprises major component (e.g.40%) of the unit of propertyIII. Cost of routine maintenance is not required to be capitalized. Routine includes:A. Expenses such as inspection, cleaning, testing, and replacing partsB. For buildings- expected to be incurred more than once in 10-year periodC. For non-buildings- expected to be incurred more than once in class lifeIV. Unit of Property- (Adopted from IRS Definition)A. Buildings-Comprised of its Structural component its Systems components:1. Structural component- the "structure or edifice enclosing a space within its walls, and usually covered by a roof"2. Component Systems-HVAC, plumbing, electrical, escalators, elevators, fire/alarm systems, security systems, gas distributions systems3. For leased building- each building & structural component (if lease entire building) or portion of each building subject to lease (if lease a portion of the building)B. Other than building-functionally interdependent components placed in service at same time in order to perform their intended function. Functionally interdependent- each desk is a unit, each chair is a unit, each book shelf is a unit, each computer, each printer, etc.C. Special rules for plant property, network (railroad, oil/gas, etc.) property, rotable spare parts |
| Software ID: | 25022934 |
| Software Version: | 2025v4.1 |