☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 3
posted Feb 1, 2022 12:36:58 PM

Equipment that I use, but didn't purchase this year, can I add as a deduction for my YouTube business?

I use my camera for all my Youtube video. I have a second camera that I use for a hobby. But I didn't purchase it during this past year. If I can still deduct that because it's related to the business, what category would I put that under? 

 

 

 

0 3 314
3 Replies
Expert Alumni
Feb 1, 2022 12:56:27 PM

If you used it in your business, you can still claim it. You must prorate it between personal and business use. In addition, since it is Listed Property, business use must be at least 50%.

 

What Is the Business-Use Requirement?

You can claim the section 179 deduction and a special depreciation allowance for listed property and depreciate listed property using GDS and a declining balance method if the property meets the business-use requirement. To meet this requirement, listed property must be used predominantly (more than 50% of its total use) for qualified business use. If this requirement is not met, the following rules apply.

  • Property not used predominantly for qualified business use during the year it is placed in service does not qualify for the section 179 deduction.

  • Property not used predominantly for qualified business use during the year it is placed in service does not qualify for a special depreciation allowance.

  • Any depreciation deduction under MACRS for property not used predominantly for qualified business use during any year must be figured using the straight-line method over the ADS recovery period. This rule applies each year of the recovery period.

  • Excess depreciation on property previously used predominantly for qualified business use must be recaptured (included in income) in the first year in which it is no longer used predominantly for qualified business use.

  • A lessee must add an inclusion amount to income in the first year in which the leased property is not used predominantly for qualified business use

 

Please see PUB 946 for more information.

 

 

 

 

Level 3
Feb 1, 2022 1:01:42 PM

Perfect. Good to know. Apologies for the follow-up question: 

 

Within the Turbo Tax web site, where would I list these? If under deductions, which I assume for obvious reasons, which category would I choose? (ie- assets, miscellaneous, etc.)

Expert Alumni
Feb 1, 2022 1:21:57 PM

The assets that are used they would be listed as an asset if the estimated life is greater than one year. As noted by @ColeenD3 you must determine the business use percentage if you also have personal use and you are allowed to use a cost basis of the lesser of the following:

  1. The actual cost of the asset; or
  2. The fair market value (FMV) on the date it was first placed in service for your YouTube business. 
    • You can determine FMV by checking various sites to determine what someone would pay for your camera in the current condition and age.

In TurboTax Self-employed Online or CD/Download:

  1. Find the Search Box and type Schedule C >  hit enter and from the search options click on Jump to Schedule C 
  2. Then (assuming your business has already been set up in TurboTax), you'll want to click Edit next to your business and then scroll down to the Business Assets topic and click on Start (or update)
  3. Continue to enter your asset and include the business use percentage when asked.

    4.