HOW DO I ENTER AN ASSET MY COMPANY PURCHASED?

[hlahti]

my business purchased a computer. How do I enter it into Assets for Schecule C?

[MindyB · Accepted solution]

It depends on if the computer cost more or less than $2,500. 

• Navigate to Federal > Wages & Income > Self-employment income and expenses
• Edit the business or add if not listed
• Choose Add Expense
• Choose the checkbox next to assets and continue
• Assets will appear in your list of expenses, choose the pencil icon to edit
  • Answer "Did you buy any assets for a rental property, business, or farm that cost $2,500 or less in 2025?" based on the price of the computer.
    • If you answer yes, it was less than $2,500, continue through the interview and you will have the option to expense the asset (or depreciate if you prefer).
    • If the computer cost more than $2,500, continue to the screen for your depreciable assets, and choose add. Here, you will enter the details for assets costing over $2,500.

[Telizabethann73]

If  the purchased land is $50,000.00 or more to build rental property on, where do I put this information on my taxes?

[AmyC]

You purchased land. It is a capital asset.

• If you are filing as an individual - you have established your basis in the land. Keep your paperwork. Nothing to report.
• If you are a partnership/ S Corp - enter it as a capital asset into your accounting software.

Once you build the rental, you will report the rental property and depreciate it. Land does not depreciate.

While the property is being built, you are in the "pre-productive" stage.

• Carrying Costs: Expenses like property taxes and mortgage interest incurred during construction must usually be capitalized (added to the cost of the building) rather than deducted immediately.
• Depreciation Start Date: You cannot start claiming depreciation (the tax break for the building's wear and tear) until the building is "placed in service"—meaning it is ready and available for rent.