I have a LLC with a sole proprietorship and manage rental properties; and materially participate in the operation of the business. I'm using a Schedule C. I have purchased a riding lawnmower and want to know if I can deduct on that form? Or do I need to depreciate; and if so do I also have to use a Schedule E for depreciation?
@Robertrish wrote:I have a LLC with a sole proprietorship and manage rental properties; and materially participate in the operation of the business. I'm using a Schedule C.
I have purchased a riding lawnmower and want to know if I can deduct on that form? Or do I need to depreciate; and if so do I also have to use a Schedule E for depreciation?
If you are renting out your own properties, those rentals go on Schedule E, not Schedule C (unless "services", such as maid service or meals, are provided to the tenants). If you are managing properties for other people, Schedule C is correct.
The 'default' rule is that items that are over $200 and useful for more than one year are depreciated. However, there are several elections that you might qualify for that could allow you to deduct larger-cost items in one year. Go to the Asset/Depreciation section and it should describe those elections. If the lawnmower does not qualify under any of those elections, continue on in the Asset/Depreciation section to depreciate the lawnmower.
@Robertrish wrote:I have a LLC with a sole proprietorship and manage rental properties; and materially participate in the operation of the business. I'm using a Schedule C.
I have purchased a riding lawnmower and want to know if I can deduct on that form? Or do I need to depreciate; and if so do I also have to use a Schedule E for depreciation?
If you are renting out your own properties, those rentals go on Schedule E, not Schedule C (unless "services", such as maid service or meals, are provided to the tenants). If you are managing properties for other people, Schedule C is correct.
The 'default' rule is that items that are over $200 and useful for more than one year are depreciated. However, there are several elections that you might qualify for that could allow you to deduct larger-cost items in one year. Go to the Asset/Depreciation section and it should describe those elections. If the lawnmower does not qualify under any of those elections, continue on in the Asset/Depreciation section to depreciate the lawnmower.