A colleague and I were working on a clients books and couldn't come to a consensus on how much is considered immaterial enough to expense an asset. I recommended that any asset purchase of less that $500.00 should be expensed as depreciating them would not make much sense, I consider the amount not material enough. She on the other hand was of the impression that for property tax purposes we needed those entered in the books as assets.

Her rationale was that most of the furniture sold now, especially from Ikea cost below $500.00. To have books without a list of furniture would raise red flags.

What is your take on this?