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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"
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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
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
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