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.
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.