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tipton04
New Member

If IIretire next year and have purchased land clearing equipment to work at after retirement. Do I file as self employed? Where do I enter my equipment purchases?

 
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KatrinaB
Intuit Alumni

If IIretire next year and have purchased land clearing equipment to work at after retirement. Do I file as self employed? Where do I enter my equipment purchases?

You will report your new equipment as a business asset on next year's tax return. You cannot set the equipment up as a depreciable asset until you are making income. The IRS requires you to depreciate equipment in the tax year that your equipment is placed in service. Then, you will file as a self-employed taxpayer and set up your business on Schedule C where you will list your business equipment. You may decide to depreciate or expense this property. Please view the TurboTax FAQ below for more information about this option. 

https://ttlc.intuit.com/replies/4682171

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1 Reply
KatrinaB
Intuit Alumni

If IIretire next year and have purchased land clearing equipment to work at after retirement. Do I file as self employed? Where do I enter my equipment purchases?

You will report your new equipment as a business asset on next year's tax return. You cannot set the equipment up as a depreciable asset until you are making income. The IRS requires you to depreciate equipment in the tax year that your equipment is placed in service. Then, you will file as a self-employed taxpayer and set up your business on Schedule C where you will list your business equipment. You may decide to depreciate or expense this property. Please view the TurboTax FAQ below for more information about this option. 

https://ttlc.intuit.com/replies/4682171

View solution in original post

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