topic Startup costs vs other common business expenses in Business & farm

Startup costs vs other common business expenses

DoctorWho — Sat, 01 Jun 2019 18:09:53 GMT

Last year I started a small business; software development. I purchased a new laptop (~$1500) for that purpose and an extended warranty. I also got Office 365 for it. I also bought a year's subscription to online training on software development. I'm wondering how to allocate this in TurboTax? Would the laptop, extended warranty and Office 365 be a part of startup costs? Since I intend to renew Office 365 this year and each year for the foreseeable future, would it be better to put that under Other Common Business Expenses?

These may be considered start up expenses, however, they...

DeniseF1 — Sat, 01 Jun 2019 18:09:55 GMT

These may be considered start up expenses, however, they should be categorized accordingly. The purchase of a laptop for business is considered a depreciable asset. The purchase of Office 365/Warranty is considered "other common business expense".

You can deduct the percentage for which it was used for work. For example if you used it half the time for work, then you would deduct 50% of your bill(estimate to the best of your ability). You will add your laptop to your asset section, which is where your amount will go.

To Enter Your Laptop as an Asset:

1. Select "Business" at the top of the screen

2. Choose "Continue", then "I'll choose what I work on"

3. Select "Start" next to "Business Income and Expenses"

4. Select "Edit" next to your business name

5. Scroll down to Business Assets

6. Now select "Start" next to "Assets Being Depreciated"

7. Enter Your Assets

8. You should come to a screen titled, "How Do You Want to Deduct this Item?". Here you can choose to deduct the total cost this year, or depreciate the asset each year.

9. Continue answering the questions until finished

For more info select this link: https://turbotax.intuit.com/tax-tips/self-employment-taxes/reporting-self-employment-business-income-and-deductions/L3Unchx1x

This does help, but while using TT it's raised on this is...

DoctorWho — Sat, 01 Jun 2019 18:09:58 GMT

This does help, but while using TT it's raised on this issue it's raised a new question which I hadn't thought of before. Will create a new question.