For equipment that I purchased that was installed at a client's office, how do I write that off? Or do I subtract it from the payments I received from them (1099)?

I did computer consulting on the side. I was hired to install new internet equipment. I paid for the equipment and the company paid me for both the equipment and the labor. Since labor and equipment are combined on one check, I am taxed on that income, but how do I offset the amount I paid for the equipment?

1643

Expert Alumni

Mar 17, 2025 10:42:53 AM

You can deduct the cost of this equipment as a business expense categorized as Supplies.

Level 15

Mar 17, 2025 10:43:51 AM

It is all under income. Then you enter it as an expense. Probably under Supplies or line 27a Other Misc Expenses.

Level 15

Mar 17, 2025 10:45:20 AM

You may use the supplies category. Alternatively, you can enter it as other expenses. There, you can label it, for example, as "equipment for Jones job".

Do not use the inventory category.

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For equipment that I purchased that was installed at a client's office, how do I write that off? Or do I subtract it from the payments I received from them (1099)?