388615
KarenJ said yes you can claim the deposit in 2018. JulieR said you will not include the deposit as an expense on your 2018 return, but report it on your 2019 return once placed in service. It can't be both. Either I can claim it in 2018 or I wait and claim it in 2019. If I can claim it on my 2018 return, what do I call it and where do I enter the information?
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In service.
It's not an expense, unless the total cost is less than $2500. It's an asset, and assets are added to your depreciation schedule when they are placed 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 availa- ble for a specific use.
PAge 34 here https://www.irs.gov/pub/irs-pdf/p946.pdf
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