What is the average dollar amount in which you would capitalize tools & equipment?

Question

My husband and I opened a plumbing business. We've bought several tools and I was wondering what is the average purchase amount in which you would capitalize the item. For example, if you bought a $200 tool would you capitalize? If not, at what dollar amount would you capitalize?

Answer 1

Every place Ive been, $1000 was usually the rule of thumb on capitalization vs expense.