Capital Expenditure Policy
Looking for any advice/ knowledge people have about capital expenditure policy's.
I bought my first rental and I am currently housing hacking. I made the rookie mistake if waiting until tax season to get tax advice and help filing my taxes. I received my tax file for review and approval for filing my taxes. During my conversation with my cpa, they mentioned that I need to make a $2500 capital expenditure policy for purchases. Meaning, any purchase over this threshold will have some kind of depreciation schedule. Any purchase under this schedule will be a business expense for the year.
Has anyone adopted this kind of policy or have even heard of it?
Granted I am new to the game, but based on the little bit I thought I had learned, capital expenditures would be related to items that 'replace' or 'improve' the property. 'Repairs' to a property would be business expense for the year.
If this is a more common thing than I realize, does anyone have questions or suggestions for conversations I should be having with my cpa about this?
I haven't been able to discuss more with my cpa yet, but figured this would be a good place for advice.
Also, if I'm using the buzz words incorrectly, please let me know.