Article 138Inclusion in Necessary Expenses of Acquisition Price of Small-Amount Depreciable Assets

①With respect to a Depreciable Asset that a Resident has put to use for business that is to generate real property income, business income, timber income or miscellaneous income (excluding those set forth in Article 120, paragraph (1), item (vi) and Article 120-2, paragraph (1), item (vi) (Methods of Depreciation of Depreciable Assets)) whose acquisition price (meaning the price calculated in accordance with the provisions of the items of Article 126, paragraph (1) or paragraph (2) (Acquisition Price of Depreciable Assets); the same applies in paragraph (1) of the following Article) is less than 100,000 yen (excluding one put to use for leasing (excluding leasing conducted as a principal business)), or whose usable period prescribed in Article 181, item (i) (Capital Expenditure) is less than one year, notwithstanding the provisions of Subsection 4 (Depreciation of Depreciable Assets), the amount equivalent to its acquisition price is included in necessary expenses in calculating the Resident's amount of real property income, amount of business income, amount of timber income or amount of miscellaneous income for the year in which the Resident put it to use for that business.

②The determination of whether leasing falls under leasing conducted as a principal business prescribed in the preceding paragraph and other matters necessary for the application of the provisions of that paragraph are specified by Ministry of Finance Order.