What does Asset purchases mean?

Forum|Forum|7 years ago
June 6, 2019
2 replies
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TurboTax Deluxe Online

Best answer by MichaelL1

It is something that you would be depreciating on the return. It increased the life or value of an existing asset.

Repairs are current expenses and are deductible in current year when an asset the deduction is spread out over a number of years through depreciation.

IRS does use a safe harbor rule that if under $2,500 it can be deducted in the year of purchase.

If I am not answered your question, please post a comment and I can help.

Thank you

MichaelL1Answer

Level 15

It is something that you would be depreciating on the return. It increased the life or value of an existing asset.

Repairs are current expenses and are deductible in current year when an asset the deduction is spread out over a number of years through depreciation.

IRS does use a safe harbor rule that if under $2,500 it can be deducted in the year of purchase.

If I am not answered your question, please post a comment and I can help.

Thank you