I'm in a similar situation (using cash accounting and putting deposits or paying outright for assets in 2024 but not placed into service until 202). So if I understand this right, for 2024 I'll create an asset for the prepayments for equipment (can I create one asset to cover multiple pieces of equipment?), but no related in expenses. This will show up on my balance sheet (and turbotax basically requires a balance sheet). So I would have additional paid-in capital, some of which went to this prepaid asset.
In 2025, I'll enter each asset in turbotax for the full amount paid for each and start depreciating them (or taking section 179?). I'll also eliminate the prepaid assets because they are now included in the assets that are being depreciated.
This sounds straightforward, but I have the sneaking suspicion that I'm going to get messed-up by the balance sheet somehow because this is spanning a couple years and I'm doing things on a cash basis.
