What expense category is a new printer?

Purchasing a new printer for your business brings up a common question: how should you categorize this expense in your accounting records? Understanding the correct expense category ensures accurate bookkeeping and can impact your taxes.

Classifying printer expenses

Printers can fall under different expense categories depending on how your business uses them. Here are the main ways to classify printer expenses:

• Capital expense: If you're buying a high-cost printer intended for long-term use (over several years), it may be considered a capital expense. This includes high-capacity or specialized printers that are significant investments.
• Operational expense: If you're leasing a printer or covering costs for its day-to-day operation—like maintenance, repairs, ink, or toner—these are operational expenses. These regular costs are associated with keeping the printer running.

Examples of printer expenses

To give you a clearer picture, here are some examples of how printer expenses might be categorized. Understanding these examples can help you accurately categorize your printer-related costs.

• Purchasing a $2,000 multifunction printer to use over several years: Capital expense
• Leasing a printer for $100 per month: Operational expense
• Buying ink cartridges and paper: Operational expense
• Paying $300 for a one-time repair service: Operational expense

Tax implications of printer expenses

Properly categorizing your printer expenses has tax implications:

• Capital expenses: These are typically depreciated over their useful life. You'll deduct a portion of the cost each year, according to IRS guidelines.
• Operational expenses: These are fully deductible in the year they're incurred, reducing your taxable income immediately.

Recording expenses correctly ensures compliance and can affect your tax calculations. Consulting with a tax professional can help ensure you're following the right procedures.

Let Ramp automate your expense process

Managing and categorizing expenses like printer costs can be time-consuming. Ramp simplifies this process by automating expense tracking and categorization. With Ramp, you'll save time, reduce errors, and keep your financial records accurate. Let Ramp handle the details so you can focus on growing your business.