The proper way to enter it is the Business Expenses as an Asset, if it is used for your self-employment income. The job-related deductions are only for expenses related to W-2 income as an employee, and it is unlikely you would even get a tax benefit from it.
The fact that your business is at a loss due to the deduction is perfectly fine. Many businesses have losses the first couple of years. However, if you consistently run at a loss for several years, then the IRS may decide that you do not have a profit intention and convert you to a hobby.
Your business loss will be netted against the other income on your tax return.
How to get to that
area
:
While inside the software and working on
your return, type Schedule C in the Search at the top of the
screen (you may see a magnifying glass there). There will be a popup that
says Jump to Schedule C. Select that to get to the general
area.
- Business Income and Expenses
- select Edit next to your business (if
it is there)
- scroll to Business Assets
If you want to reduce the amount of current deduction (and reduce your business loss), then do not elect any accelerated depreciation or Section 179 expense deduction. This will allow a smaller deduction for 2015, and additional deductions for the following years (until the cost basis is used).
