Thank you for the additional information.
Yes, you may claim Section 179 depreciation for the equipment you have purchased to lease to others.
However, you can take Sec 179 for no more than $500,000 of the cost of qualified assets placed in service during the year.
Also, your Sec 179 deduction cannot be more than your net business income. Any Sec 179 deduction that exceeds that amount can be carried forward and claimed in a subsequent year.
You also have the option to take Sec 179 on all or a portion of the cost of qualifying property. If you choose to deduct only a portion, you can generally depreciate the remaining cost over the asset's useful life.
After you set up your business for Schedule C, TurboTax will offer the Section 179 election (for all or part of the cost) as you set up your business assets for depreciation. When you enter depreciable assets – vehicles, buildings, farm equipment, intellectual property, etc. – TurboTax will automatically generate Form 4562 and all related forms & worksheets.
The easiest way to find Schedule C in TurboTax is to open your return and use the Search box at the top right side of the TurboTax header. Enter "schedule c", hit Enter, then click on "jump to schedule c". This will take you directly to the start of this section where you can set up your business and enter your income & expenses.
From the Business Summary page, scroll down to Assets/Depreciation and click Edit/Update. The first set of questions relates to the Safe Harbor Election, which allows you to expense certain assets that you would normally capitalize (limited to $2,500 per asset). If you choose this election, you will enter the assets as Business Expenses and not under Depreciation.
After the Safe Harbor Election questions, you can begin adding your Assets for Depreciation. It's best to enter each asset separately to avoid any problems in the future should an asset be retired, stolen, or sold. Look for the Section 179 page and read any blue links ("Learn More") on any entry page if you need help.
Or come back to this forum and post another question.
Good luck!
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