3596390
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Where in TurboTax to expense non depreciable assets?

I have revenue from a YouTube channel. I purchased a few items for the sole purpose of making these revenue generating YouTube videos. These include items like: a new computer, camera, microphones.

 

The help page for "Establish a policy for writing off your purchases" says "It's common for small businesses with revenues of less than $20,000 to expense lower cost items. This keeps accounting simpler."

 

I have less than $20,000 of income and want to expense these items rather than depreciate them.

 

Where exactly do I do that in TurboTax? Can you tell me exactly how to navigate to this?

 

I'm on the "Any Large Purchases (Depreciable Assets)?" page and it says "We handled your smaller purchases in the expense topic" 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
DawnC
Expert Alumni

Where in TurboTax to expense non depreciable assets?

When you purchase items for your business, you can either deduct the full cost of the expense at once, or you can deduct the cost over multiple years (depreciation).  One-time expenses typically reduce your income by a larger amount than depreciating an asset over multiple years.  This means you could get a bigger refund.

 

The De Minimis Safe Harbor election lets you deduct the full cost of items worth $2,500 or less, instead of depreciating.  The election is available for Schedule C businesses, rentals, farms, and farm rentals.

 

For instructions on claiming the De Minimis Safe Harbor Election in TurboTax, see the TurboTax FAQ below and select your product.

 

Expensing Assets with the Safe Harbor Election

 

For items over $2500, you may be able to depreciate them 100% - but this is entered in the Assets/Depreciation screen.   See Section 179 - Business Assets  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
DawnC
Expert Alumni

Where in TurboTax to expense non depreciable assets?

When you purchase items for your business, you can either deduct the full cost of the expense at once, or you can deduct the cost over multiple years (depreciation).  One-time expenses typically reduce your income by a larger amount than depreciating an asset over multiple years.  This means you could get a bigger refund.

 

The De Minimis Safe Harbor election lets you deduct the full cost of items worth $2,500 or less, instead of depreciating.  The election is available for Schedule C businesses, rentals, farms, and farm rentals.

 

For instructions on claiming the De Minimis Safe Harbor Election in TurboTax, see the TurboTax FAQ below and select your product.

 

Expensing Assets with the Safe Harbor Election

 

For items over $2500, you may be able to depreciate them 100% - but this is entered in the Assets/Depreciation screen.   See Section 179 - Business Assets  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question