I purchased an RV in 2018 for an unlicensed business can I still take the depreciation on it? Or do I need a licensed business to take the depreciation? Thank you

[juliedumas18]

I am just concerned is I were to get audited what would I have to backup my business I only have a few receipts since I purchased it towards the end of 2018. 

[MichaelL1 · Accepted solution]

IRS wants all income to be reported and it does not care if the business is licensed or not.

Now as far as any business expenses go, they must be ordinary and necessary in conducting the business.

Purchasing a RV, yes, IRS might look at, to see is it an ordinary and necessary business expense for you?  I can't answer that, however whenever you purchase as assets that might have a personal pleasure to it, such as an RV, then IRS does look closer -however that does not mean it is not deductible.

Just keep detailed records of mileage, trips and business purpose.