ReginaM
Expert Alumni

Business & farm

If the cost is less than $2,500, then you can enter it as a Other Miscellaneous Business Expense, or if it is more than $2,500 you will enter it as an Asset  where you find the Section 179 election.

 

To enter as a Miscellaneous Expense:

  1. While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to Schedule C.  . 
  2. select Edit next to your business,
  3. scroll to Business Expenses,
  4. then, Other Common Business Expenses,
  5. select, then on the next screen you will see categories and can choose Other Miscellaneous Expenses

After selecting Other Miscellaneous Business Expenses, you will be able to type a description and the amount.  For the description write "Safe Harbor Asset" or something similar next to the Computer Name.

 

To enter it as an Asset and take the Section 179:

  1. Business Income and Expenses
  2. select Edit next to your business 
  3. scroll to Business Assets
  4. Enter the details of the computer purchase (Date, purchase amount, description)

On the following screens you will be able to elect to Expense all or some of the cost (if you have a net profit).

 

Follow through all the areas in the Business section of the TurboTax software and it will provide you with a lot of assistance. You'll notice blue links that have more information and details about the particular sections that will be extremely helpful.   

 

Here is a link to Publication 946 which will provide helpful information in regards to depreciating your assets.

 

Should you have further questions in regards to your business computers, please respond to this thread.

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