What is an ASSET and WHAT Makes it DIFFERENT from SUPPLIES? Purchasing an ASSET is the easy part , but when it comes to Deducting an ASSET on your tax return, it must be reported differently than the other expenses such as SUPPLIES. Did you buy a CB Radio, Refrigerator, a Truck or anything else to be used in your business that is expected to keep its value for more than 1 year and cost more than $100? If you did, you purchased an ASSET for your business. An ASSET is something that provides a current, future, or potential economic benefit for an individual or business or other entity and has the following characteristics: FAIR MARKET VALUE EXCEEDS $100 WHEN PURCHASED IS DESIGNED TO HAVE A USEFUL LIFE AND FUNCTION FOR MORE THAN 1 YEAR IS OWNED (not leased/rented) BY YOUR BUSINESS WAS PURCHASED NEW OR USED WAS PURCHASED BY YOUR BUSINESS AND IS USED IN YOUR BUSINESS Is both ORDINARY and NECESSARY to your business ITS ORIGINAL VALUE