Tax Year 2016: I had a net profit in 2016, purchased new embroidery machine in December, two I had broke. I financed the new machine for 5 years. How do I take that off my schedule c?

[lalc91501]

I had two singer Quantum cross/over sewing/embroidery machine that literally broke down with in 10 days of each other.  They were older machines and not repairable.  I ended up having to purchase a new cross/over for $9000.00.  I financed the machine for 5 years.  My business shows a profit for 2016, but since I purchased the new machine in December (first payment due in January 2017), how do I do this on my Schedule C?  I tossed the 2 that were not repairable, so how do I add that to my schedule C?

[KarenL2]

You can go ahead and add the full purchase price of the new machine as an Asset. Also, the interest can be deducted as a business interest when you start paying.  The other machines can be entered as a line item with a description and the amount.

How to get to that area :   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.  Select that to get to the general area. 

• Business Income and Expenses
• select Edit next to your business (if it is there)
• scroll to Business Assets (for the new machine)

For the other two machines:

• scroll to Business Expenses
• then, Other Common Business Expenses
• select that, 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.