Online Business and what can be written off?

[Maundu40]

was wondering since I've purchased new equipment(chairs, a laptop and a table) for my online business, how do I write it off and how do I factor in depreciation?

[Jackstar221]

Chairs, laptop, and tables can all be written off as business expenses if they were purchased during the tax year in question.

The rule of thumb is that if the items are less than $2,500, they should be expensed in full during the tax year. If the items are $2,500 or more a piece, they can be depreciated.

In order to depreciate, you can add them as assets in schedule C of your 1040 tax return, in the self-employment income & expenses section of TurboTax.

If it is a 1065 or 1120-S, you can enter the assets to be depreciated in the deductions section of TurboTax.

Here is a link to publication 946, regarding how to depreciate property:

https://www.irs.gov/publications/p946 

[Maundu40]

Thank you much for the response.

[Jackstar221]

You are welcome, thank you for contacting TurboTax, have a great day!