topic Asset Depreciation for Small Business in Get your taxes done using TurboTax

Asset Depreciation for Small Business

Leudast — Wed, 05 Feb 2020 01:57:59 GMT

We bought a set of tools for our business priced at 499+Tax.

When filling the price for depreciation should I use only 499 or also include the Tax?

Re: Asset Depreciation for Small Business

GiseleD — Wed, 05 Feb 2020 02:23:31 GMT

You will include the sales tax you paid in the total amount for depreciation.

Re: Asset Depreciation for Small Business

Leudast — Wed, 05 Feb 2020 02:32:02 GMT

Thank you!

Another question, do I also include the sales Tax when filling out the expenses for the business like materials and office supplies? Or is there a place where I put the whole amount for sales taxes paid on this expenses?

Re: Asset Depreciation for Small Business

GiseleD — Wed, 05 Feb 2020 02:37:47 GMT

You're welcome!

And yes, you include sales tax for your other business expenses when entering them in Schedule C. For example, if you bought a box of copy paper, include the sales tax in the total expense. It doesn't need to be itemized and entered separately.

Re: Asset Depreciation for Small Business

Leudast — Wed, 05 Feb 2020 02:48:15 GMT

Thank you so much for the fast feedback.

And if I already have everything itemized on my books, is there a place where I can put them?

Re: Asset Depreciation for Small Business

GiseleD — Wed, 05 Feb 2020 03:05:03 GMT

You will enter them into your Schedule C based on category. Here's how:

Under Income & Expenses (tab at the top of your screen), click Review next to Self-employment income and expenses (this assumes that you have already entered your self-employed income).
Click Review again next to the specific self-employed activity and scroll down to the Expenses category. Follow the step-by-step guidance to enter your expenses in the appropriate category.

Re: Asset Depreciation for Small Business

Leudast — Wed, 05 Feb 2020 13:27:43 GMT

Thank you, sorry i didn't explained further, I'm working on Turbo Tax Business because I have a Multi-Member LLC that do home renovations.

We itemized all the taxes paid when buying tools and materials.

In the deductions I have Taxes, Licenses and Fees and is breakdown in

Local Property Taxes
Other Taxes
State Income/Franchise Taxes
Licenses, Permits and Fees

Can I put the itemized taxes of the tools and materials in one of those taxes categories, or should i just add up the tax of each on its corresponding category?

Thank you.

Re: Asset Depreciation for Small Business

JulieS — Wed, 05 Feb 2020 23:33:33 GMT

You can create a category for small tools and equipment to deduct your tools.