Computer Deduction

Forum|Forum|4 years ago
March 17, 2022
2 replies
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Last year, I claimed a full computer on my sch c for ebay sales. I purchased it in November and put it to use in December, the total deduction was 656.00. Well I only used it in December and got a tablet from work in January which I now use. I gave the computer to my son. I need to pay money back now I believe? Will turbo tax automatically do this for me and take the amount from my refund. If so, how do I complete this? I complete a sch c for ebay along with my 1040

TurboTax Self Employed Online

ThomasM125

Level 15

TurboTax will calculate the income associated with the retirement of the asset and report it on your tax return. You need to visit the business section in TurboTax, update the Business and Expenses, edit your business and then your Business Assets.

You will see a screen that says Tell Us More About This Asset/Large Purchase. You need to check the option that says The item was sold, stolen, disposed of, etc... Once you do that you will be asked to enter the Sales price for the asset, to which you will enter $0. That will result in the asset being removed and the associated income or loss reported on your tax return.

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Mike9241

Level 15

i disagree with using a sales price of zero. you made a gift of an asset that you deducted for business. in effect yo sold it to your son for its fair market value.

the other solution given would mean you could buy vehicles (as many as you could afford) for your business expense them (short term use only for business) and then give it to your spouse, children, relatives whomever, without tax consequences. I believe the IRS would disagree.

Mike9241

jjzonka Author

Level 4

So what is the correct thing I should do in this situation the turbo tax section is not asking me anything about cost. It asked me the date that it was no longer in use and when entered it says something to regards that this will be configured later? I’m trying to sew the right thing to do.