Hi there,
I'm working on my 2024 taxes for a side job selling photos on Shutterstock, in addition to my full-time job that provides a W2. It’s a very slow business, and I don’t always get paid (payments are made only after reaching a minimum of $35). I started my account in 2016 and have received two 1099-MISC forms over the years, one of which was for 2023. Motivated by the opportunity, I purchased a new camera, took more photos, and uploaded more in 2024.
This is the first time I'm trying to add business expenses. Initially, I thought I’d list the camera ($1200) under "Assets," but then I saw the guidance that suggested: "Make sure these purchases are entered as other miscellaneous expenses, not assets," once I selected "Every item I bought costs $2,500 or less."
When I attempted to enter the camera under "Other Miscellaneous Expenses" as instructed, I noticed there was no field to input the business portion or percentage of the purchase. As a result, I entered the full purchase amount ($1200) without specifying a business usage percentage.
I’m aware that if I had entered the camera as an asset, TurboTax would have prompted me to input the business portion (e.g., 55% for business use).
Thank you for your assistance!
1. You can expense assets costing less than $2,500 when you make the de minimis safe harbor election. You'll have to calculate manually the business portion of each asset. For example, if the camera costs $1,200 and the business use is 40%, you'll report $480 ($1,200 x 40%) as an expense. The same applies for accessories.
Please read this TurboTax Help article on the de minimis safe harbor election and how to claim it in TurboTax.
2. Yes , you can deduct the extra cost of TurboTax as a business expense.