Hi,
I moved into my new home in mid December, 2024 and set up my home office.
I ordered a desk and bookcases and paid for them in late December 2024, and they arrived and were put into service early 2025.
In TurboTax Home & Business I seem to be stuck in the Business Assets and Sec 179 area. The program will not allow a purchase date of 2024, and a places in service date of 2025.
I understand that depreciation begins when the equipment is placed in service, and I understand that Sec. 179 is for equipment bought and placed into service in the same year.
My question is how do I account for this situation? Must I wait until 2025 tax year to enter this equipment, even though the purchase date is 2024? Will that be accepted, or can I still deduct the cost in 2024 and depreciate the equipment beginning in 2025?
Thank you in advance!
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No. If you did not place it in service in 2024, then you cannot take the deduction for it in 2024, you will need to wait until 2025 when it was actually placed in service.
A purchase date prior to placed in service is allowed. So, when you go to file your 2025 taxes if you enter that you purchased the items in 2024 and placed it in service in 2025, you will be able to take the deduction.
Thank you very much for your clear and concise answer. I've been searching two days for this information without any luck. Again, thank you.
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