Is there a GAAP rule on capitalizing an item expensed in the prior quarter? Expensed in Q1, I would like to re-class in Q2 then capitalize the item.

So you expensed it in Q1, then in Q2 you said, I should have capitalized it, can I still do it?

Since no financial year has even ended, I am pretty sure you can do it. Can't think of any GAAP rules that prohibit it.