How do I show the purchase of a Kangen Water machine from Enagic, USA (I am a distributor) as an expense on Schedule C?

[KittyM]

If you purchased this item for resale, it should be shown as a purchase in Cost of Goods Sold.  

Follow the instructions below to enter "Cost of Goods Sold":

• In your Federal return, choose the tab for Wages & Income 
• Then, scroll down to the section Self-employment income and expenses and Show more/Start/Review  
• On the Let's gather your business info screen you'll see Business Income and Expenses. 
• Click on Start/Update The next screen will be Here's the business info we have so far. If you have been here before you can just select Edit. 
• On the next screen, choose Inventory/Cost of Goods Sold and Start/Update.

[adelejonsson]

Did you ever get a good answer for this?

[supergoddess23]

It's a business expense, just like a computer is.  I would put it there.

[ToddL99]

If you purchased this item for resale, it should be shown as a purchase in Cost of Goods Sold.  

Follow the instructions below to enter "Cost of Goods Sold":

• In your Federal return, choose the tab for Wages & Income 
• Then, scroll down to the section Self-employment income and expenses and Show more/Start/Review  
• On the Let's gather your business info screen you'll see Business Income and Expenses. 
• Click on Start/Update The next screen will be Here's the business info we have so far. If you have been here before you can just select Edit. 
• On the next screen, choose Inventory/Cost of Goods Sold and Start/Update.

(See @KittyM 's post above)

If you purchased the water machine for use by you and your employees (or as a demonstration model, not to be sold), then enter it in the Business Assets interview. The interview will guide you through the necessary steps to "expense" the item in the current year or depreciate it over its useful life.

[supergoddess23]

Thanks, that is what I choose to do.  As it is not for resale.

[SavannahJan]

I purchased a Kangen water machine and accessories (about $6000 worth of product) to try to start a side business and sell it. I am making the conscience effort to advertise and promote the product but have not gotten a sale yet. In the event that I don’t sell any in the year, I will not receive a tax form from Enagic (I would need to sell 3 total)… will I still be able to write off this expense regardless of not bringing in any income or receiving a 1099-MISC?

[Affordabletaxes2021]

Do you have receipts for your expenses? You said you were going to try to start a business? Did you? Did you have any customer encounters? What exactly did you do with it? Is it for personal use? I’m 

[SavannahJan]

Yes I have all receipts for expenses of the purchase and accessories required. It is all on one card to keep track of expenses specifically for that. By starting a business do you mean open up an LLC/ getting a business license? No. It is an MLM, you are not required to since you are technically an independent contractor. As I stated, the whole goal is to sell however much I can. I have made customer encounters and I have made the effort to market and can show proof, I am just worried, that if i don't make any sales that I won't be able to write off any of my expenses since there is potential that I won't receive the 1099-MISC form. Sorry, this is my anxious mind thinking the worst of the situation.

[Affordabletaxes2021]

This would require depreciation so you cannot just write it off. Enter it as an asset in your tax return. Enter the cost and other questions about when the unit was put into service . The software will compute the annual depreciation deduction you’ll be allowed to take.