We purchased a lawnmower to mow our storage units? It was 2499.99 before tax and over $2500 after tax. Should I claim as expense or asset?

[m-storz]

Is it better for me to claim it as asset or expense? If an expense, which line do I put it on. I know if I do it as expense, I get a larger return this year. Will it let me claim as expense as it is over $2500 after tax? 

[MichaelDC]

Use the cost of the mower (or any asset) plus the sales tax when determining the $2500 rule.

If it doesn't qualify for the rule, you can still claim a Sec 179 deduction which would have a similar "expense" effect. If you have any other details regarding this question, please feel free to post them in the comment section. 

Instead of depreciating an asset over a multi-year period, you might be able to deduct its entire cost during the first year of use. This is called a Section 179 deduction, also (erroneously) called Section 179 depreciation. Think of it as instant gratification when it comes to deducting the cost of a newly-purchased business asset.

To enter a Section 179 asset:

1.      Select the Federal Taxes tab, and then click Deductions right below it.

2.      Click the Start or Edit button to the right of Assets.

3.      Follow the on-screen instructions. When you get to the How Do You Want to Deduct this Item? screen, select Deduct all or part of the item's value this year.

4.      Enter the amount of Section 179 deduction you want to claim for the asset. Do not exceed the cost of the asset

[m-storz]

Followed the directions above but it would not allow me to claim the full value. Only as a depreciation item, it has 0 in the 179 section?

[MichaelDC]

Is this a Schedule E Rental?

[m-storz]

Yes

[MichaelDC]

Section 179 specifically excludes personal property used in *residential* rental property. However, there is still one important property category you can deduct under Section 179: Personal property you use in your rental business that is not located inside your rental buildings. This can include:
    computers
    telephones and cell phones
    office equipment
    office furniture you use in your office or other place of business
    cars and other vehicles
    software, and
    maintenance equipment such as lawnmowers.

[MichaelDC]

Still researching how to do this on your Sch E. Have you marked the rental property as "Non-residential Real" anytime asked?

[m-storz]

Yes non residential.

[MichaelDC]

Just did it myself. Posted screenshot in original answer. Fill as shown. Pay no attention to Special Depreciation allownace.

[MichaelDC]

Continue and click NO on next page. Then see next screenshot.

[MichaelDC]

That should do it. Make sure you're using 2017 as first year, and 100% business use. Unfortunately, I have to leave. Good luck. Hope I helped. I'll check in tomorrow.

[m-storz]

My pages look different. I select tools, general purpose, amount and purchase date, then new and 100% for business, then it doesn’t give me he option like it gave you. Just says section 179 $0, special dep $1314 and Depreciation $188.

[m-storz]

Got it! Thank you so much for your help!

[MichaelDC]

Nice going! Glad to help!