I run a home photography business. Last year I purchased camera equipment, some under $2,500 and some over. Where do I add these expense deductions?

[PatriciaV]

Yes, the Safe Harbor Election allows you to expense purchases less than $2,500 while depreciating assets that cost $2,500 or more.

First go to the Assets/Depreciation section for your self-employed business and answer the questions to make the Safe Harbor Election. (Find this topic on the Business Summary page under the Business tab in TurboTax Self-Employed.)

Also enter your purchases of $2,500 or more in this section. TurboTax will calculate the allowable depreciation expense based on your entries.

Finally, enter the purchases you chose to expense under the Safe Harbor Election (SHE) in any reasonable business expense category found under Other Common Expenses in the Business Expenses section (see screenshot #1 below - click to enlarge).

Most taxpayers report these expenses under Other Miscellaneous Expenses (screenshot #2) using a custom description (ie: "SHE Equipment) to identify the assets that were expensed (screenshot #3).

Additional Information

• What can I expense or depreciate with the new business safe harbor election?
• IRS Safe Harbor Election FAQs

[Travisech]

I don't see these screenshots of the different categories. Is there a way to view them? Thank you for the help.

[RobertB4444]

When you start to enter self-employment income into TurboTax you will begin by clicking on this section here-

and click on 'Business Income and Expenses (Sch C)'.

Once in there you will have to enter a lot of information about your business.  If it has a name you will enter it here and any income that the business made gets entered here as well.  If you received form 1099-NEC or 1099-MISC or 1099-K you will have a chance to report them.  There is also a section to report payments that you received that were not on a form.

The next screen is where you will enter expenses-

Here you can enter any expenses relevant to your business for the year.  Once you have finished entering those expenses TurboTax will calculate your profit or loss for the year and what taxes you will owe.

@Travisech