No -- That would be "double-dipping."
You could enter the computer as an asset and take depreciation over a number of years, or if the cost is less than $2,500, you can take it as an expense (but not a startup expense).
You can deduct up to $5,000 of startup costs as a current business expense. The remainder is amortized over 180 months.
Start-up costs include:
No -- That would be "double-dipping."
You could enter the computer as an asset and take depreciation over a number of years, or if the cost is less than $2,500, you can take it as an expense (but not a startup expense).
You can deduct up to $5,000 of startup costs as a current business expense. The remainder is amortized over 180 months.
Start-up costs include:
Thank you! To follow, my next question is, what would the benefit be of classifying my computer under $2,000 as an expense vs. an asset?
Also, if I purchased the computer prior to 2017, should I enter what I purchased it for or the current value?
When could you use the deduction more to offset income? If you have a large amount of income in 2017 you might want to take the entire amount as an expense. If you'd rather have a portion of the deduction to offset income for the next 5 years, then treat the computer as an asset.
Enter the current value.
Thank you for the response! Since I am just starting out my photography business I hardly had any income and my equipment like my computer and camera cost more than what I earned. Since I don't have any net income, would you suggest I classify them as assets?