Expenses incurred prior to starting your business are capitalized as:
- start-up costs - Section 195
- organizational costs - Section 709
- fixed assets - not depreciated until placed in service for their intended use. Can't be in service if the business has not begun its operations.
Your equipment falls into the last item. In 2019 you have several choices; bonus depreciation, regular depreciation or Section 179. Each may have its own merits, but needs to be determined based on your specific facts.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
