@jakeamarkie wrote:
Hi,
To clarify, the equipment is a drone. From July 2019 to December 2019 I was using it for non commercial use, but I was using the equipment to get familiar with it and practice, as this is needed in order to use it efficiently. From December 2019 until today, I have been using it for commercial use as a freelancer.
The main purpose of purchasing it was to use it for business, but wasn't sure how that worked if I wasn't using it commercially.
Specifically for the drone, if your business was active starting December 2019, then you should have filed a schedule C for the 2019 tax year. You would have listed the drone as an asset, placed in service in December 2019, and listed for depreciation based on it's class life and the fair market value at the time.
Regarding other startup expenses like "training and certifications", you are not allowed to deduct as a business expense, training that is required to meet the minimum standards to enter your field of business. You can deduct training and certification expenses to maintain or improve your qualifications, but you can't deduct expenses needed to meet the minimum qualifications. (For example, if you wanted to be an Uber driver but did not have a driver's license, you could not deduct the cost of a driver's ed class. You could deduct the cost of a defensive driving class after getting your license.)
Other startup costs like advertising, making business cards, renting an office, and so on, should also have been listed on schedule C for 2019 if that is the year your business was first active. Startup expenses can sometimes be deducted as an expense, and sometimes must be amortized over 15 years. turbotax should provide guidance on this, or you may want to seek advice from a professional.
It sounds like you might need to amend your 2019 return before you file for 2020.
