I have a client who is renovating their office. I believe the owner's husband is doing most of the labor and they're hiring some of the labor out for things he can't handle. The owner is not paying her husband but they are incurring thousands of dollars in charges to Lowes & home depot. A majority, if not most of these charges are under $2,500. Even if they're over the DMSH the individual line items wouldn't be.
My question is should I be capitalizing these? I've never had this before so I'm conflicted. Obviously the contractors that are paid over $2,500 need to be capitalized, but I was sure if all these charges to Lowes and home depot should be. Maybe on a per project basis? Any thoughts are welcomed.