Where do I deduct computer equipment purchased for my home business?

Forum|Forum|7 years ago
June 7, 2019
2 replies
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TurboTax Self Employed Online

PatriciaV

Level 15

Computer equipment for a self-employed business is reported under Assets/Depreciation.

Beginning this year, the Safe Harbor Election allows you to expense business assets costing $2500 or less that would normally be subject to depreciation.

To expense the cost of business assets purchased for $2500 or less, first go to the Assets/Depreciation section for your business (self-employed, farm, or rental) and answer the questions to make the Safe Harbor Election.

Then go to the Expenses section and add these items under the most appropriate category. If in doubt, you may report these costs as "Other Expenses" (usually the final screen in the Expenses section) using your own description.

If you're reporting a business on Schedule C, go to the Business tab, then Business Expenses, Other Common Business Expenses. To enter your own description, use "Other Miscellaneous Expenses." The entry screen provides several boxes for descriptions and amounts.

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Nasr1

Level 2

J am using turbo tax home and business. I am trying to prepare 2021 return. I am still working in my profession, but I also own and manage a rental home. How. would I report computer accessories and accounting software I purchased. The accounting software is exclusively used for tracking the rental income and costs. Computer accessories are used for personal as well as the rental income data management. Where w.r.t. TT Home & Business would I click to be able input the data. I do recognize that I would be able to write off a part of the computer accessories cost as well as the internet cost.

Thanks,

Nasr

RobertB4444

Level 15

When entering expenses for your rental home into TurboTax it will have many categories. You can list your software as "Accounting Software" and your computer accessories as "Office Expenses" . Make sure to only expense the percentage that you use for the rent house.

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Nasr1

Level 2

Thank you. The answer does help. But ...

The form does not have the categories you mentioned. I suppose I would have to enter those when TT asks me if there were other expenses following inputting the data under the categories listed on previous screens.

JohnW152

Level 15

Yes, you'd need to go back through the interview process. To enter these expenses in TurboTax Online:

If you’re on the Hi TurboTax Client, let's keep working on your taxes! screen, click the Pick up where you left off button
Click Federal in the left pane, if you’re not already there
Click Income & Expenses in the banner
Click Show more to the right of Self-Employment
Click Start to the right of Self-employment income and expenses
Click Yes on the Did you have any self-employment income or expenses? page
Once you’ve input your income data, you’ll come to a page where you can enter your expense data. For computer accessories and software, select Supplies.