Shannon B1
Expert Alumni

Business & farm

Since you haven't received the asset yet, you can't expense the amount you paid in 2024. It's considered a deposit, and deposits aren't expenses.

 

For your 2025 taxes, you'll record the equipment as a fixed asset for the full amount you paid and take a depreciation expense.

 

You can only deduct the interest portion of any payments you made in 2024.