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davido
New Member

Entered new photo equipment (professional photographers) in business assets, depreciated, 179. confused about safe harbor. annual election. use it or not? enter where?

value of each item is below $ 2500. I selected the annual election as well but don't understand if I delete that item then out of the assets and enter it as an expense?
5 Replies
DDollar
Level 7

Entered new photo equipment (professional photographers) in business assets, depreciated, 179. confused about safe harbor. annual election. use it or not? enter where?

If you have made the election to expense, in the current year, all asset purchases of $2,500 or less, then you will need to delete those items from the Asset list.  The election requires you to expense ALL assets of $2,500 (you can't pick and choose).  You will enter as a Business Expense.  To enter, follow these steps:

  • Click on the Business tab
  • Click Continue
  • Click I'll choose what I work on
  • Under Business Income and Expense, select Profit or Loss from Business and Start or Update
  • Start or Edit your Business
  • Scroll down to Business Expense
  • Select Other Common Business Expenses
  • Select the appropriate category or use Other Miscellaneous Expenses
  • Enter a Description for your equipment and the Amount of the expense
  • Click Continue

davido
New Member

Entered new photo equipment (professional photographers) in business assets, depreciated, 179. confused about safe harbor. annual election. use it or not? enter where?

what is the difference between using the annual election compared to the full value deduction section 179
DDollar
Level 7

Entered new photo equipment (professional photographers) in business assets, depreciated, 179. confused about safe harbor. annual election. use it or not? enter where?

You cannot use a 179 deduction to create or increase a loss.  You cannot use a 179 deduction for residential rental property, but you can use the de minimus election.  Certain types of assets don't qualify for Section 179.  There are other rules and restrictions for Section 179 deductions.
davido
New Member

Entered new photo equipment (professional photographers) in business assets, depreciated, 179. confused about safe harbor. annual election. use it or not? enter where?

If an item qualifies for Section 179 is it better to use 179 or the annual election?
DDollar
Level 7

Entered new photo equipment (professional photographers) in business assets, depreciated, 179. confused about safe harbor. annual election. use it or not? enter where?

If you make the election, you have to expense everything $2,500 or less.  I see no benefit to using Section 179 as opposed to expensing.

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