As the equipment is placed in service in February2025, you can only enter it as an asset and start depreciating it in 2025.
In 2024, you do not record the payment made in 2024 as an expense. If you have to submit a balance, it would be a current asset called Prepayment.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
