Trailer purchased in 2022 not in service at 12/31/22

[chocyady]

I purchased a horse trailer in July 2022, additional expenses to prepare but not in service at 12/31/22. TT Home/Business is asking if 100% in use for my business. It will be in 2023. I answer "yes" to used 100% but won't accept a 2023 and first date started using for business?

TIA!

[PatriciaV]

If you purchased the trailer but didn't use it for your business, don't enter it as a business asset until the year when you place it into service. You can't enter a start date beyond the end of the current tax year.

The additional expenses you incurred to make the trailer usable will be part of your basis in the trailer when you enter it for depreciation.

[chocyady]

Ok, thank you! Am I able to carryover my cost from 2022 to 2023? I'd love to just move this all the 2023 and not worry about 2022 but am very nervous! 

[AliciaP1]

Yes, as posted, also keep track of any costs to prep or store the trailer and add them to the purchase price when you enter the asset on your 2023 taxes.

@chocyady 

[chocyady]

Thanks so much!