Equipment purchase deduction

Forum|Forum|7 years ago
June 4, 2019
7 replies
72 views

I am sole proprietor of a LLC with no revenue in 2018. During the same year I purchased equipment necessary to make the business profitable in 2019.Can I deduct the equipment purchase in my 2018 return even if I had no revenue?

TurboTax Home & Biz Windows

TaxGuyBill

Level 13

If the business was 'open' in 2018, yes, the expenses are deducted or depreciated in 2018.

ScruffyCurmudgeon

Alumni - Champ

@TaxGuyBill There are limitations on the amount of such deductions! q.v.,

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Anonymous

something you should consider if you haven't already. if you can and do fully deduct the cost in 2018, what will your tax situation look like in both 2018 and 2019. could you have a net operating loss in 2018?. In that case you would have to carry it back to 2016 unless you make an election to carry it forward to 2019 (there will be a box to check in TT to make this election)