Tax Year Prior to 2020: Computer expense for schedule c

[detectorist%79]

I want to deduct the computer I bought for my business.  I don't want to bother with depreciation.  What schedule C category would I use and where do I find the section 179 "expensed"  page?

[KarenL2]

If the cost is less than $2,500, then you can enter it as a Other Miscellaneous business expense.  Or, if you enter it as an Asset, that is where you find the Section 179 election.  

How to get to that area to enter it as a Miscellaneous Expense:   While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to Schedule C.  Select that to get to the general area. 

• Business Income and Expenses
• select Edit next to your business (if it is there)
• scroll to Business Expenses
• then, Other Common Business Expenses
• select that, then on the next screen you will see categories and can choose Other Miscellaneous Expenses

After selecting Other Miscellaneous Business Expenses, you will be able to type a description and the amount.  For the description right "Safe Harbor Asset" or something similar next to the Computer Name.

To enter it as an Asset and take the Section 179 follow the steps above, then:

• Business Income and Expenses
• select Edit next to your business (if it is there)
• scroll to Business Assets

You will enter the details of the computer (purchase date, etc), then on the following screens you will be able to elect to Expense all or some of the cost (if you have a net profit).

Follow through all the areas in the Business section of the TurboTax software and it will provide you with a lot of assistance. You'll notice blue links that have more information and details about the particular sections that will be extremely helpful. 

Also, this link may be helpful to you IRS Small Business Help Center .

[ertel]

Thank you for your direction on finding the 179 Deduction choice.

[Khanhqnguyen]

@KarenL2 If I bought a laptop and a cellphone for my business, that cost around $2400. Then I would write "Safe Habor Asset" in the description column and amount 2400, right? Thank you!

[CatinaT1]

You can put laptop safe harbor asset for the description.  Enter the laptop and cell phone as separate items.

[SandyK1]

Am I correct in understanding that if I enter a computer purchase as a Miscellaneous expense w/ description "safe harbor", then I don't enter it as a 179 asset?   What are the pro/cons of these two approaches - assuming I want to expense the entire asset this year?   I'm a bit confused between the differences and whether I need to complete a form to indicate 179 asset if I enter it under Misc business expense.  Will you please clarify for me?  Thanks.

[JamesG1]

Recording an asset purchase under the de minimis safe harbor threshold of $2,500 allows you to immediately expense all items which meet the $2,500 threshold for the current tax year.  The assets are reported as expenditure lines on your self-employment activity expenditure section.

Section 179 deduction allows you to expense part or all of the cost of individual section 179 assets.  The 179 deduction can be used for assets that cost more than $2,500.  Your Section 179 deduction amount cannot exceed your net business income for the year, but if it does, you can carry the excess over to a future tax year.  The deduction is reported on line 2 of IRS Form 4562.

@SandyK1