I bought a big purchase last year to start a business, but I have yet to start a business yet. I have a full time job as well. What Turbo tax is best for me and how should I claim any money if I can?

Forum|Forum|6 years ago
February 3, 2020
3 replies
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Best answer by ColeenD3

That is the case for small expendable items. An asset works differently. To be depreciable, property must have a useful life that extends substantially beyond the year you place it in service.

You begin to claim depreciation when your property is placed in service for either use in a trade or business or the production of income. The placed in service date for your property is the date the property is ready and available for a specific use.

You can't place an asset in service if the business hasn't started yet.

ColeenD3

Level 15

I am assuming it is an asset. You can't deduct an business asset without a business. If you begin your business in 2020, you will place that asset in service at that time. You have a number of ways to expense it, related to depreciation.

skk1121Author

Level 2

So currently, I cant list that big purchase under any claim for 2019, but its not too late for 2020 if I start a business? I always thought that whatever you buy that year can only be claimed for that year. So this can work?

ColeenD3Answer

Level 15

That is the case for small expendable items. An asset works differently. To be depreciable, property must have a useful life that extends substantially beyond the year you place it in service.

You can't place an asset in service if the business hasn't started yet.