Software deduction on personal return

Forum|Forum|6 years ago
March 14, 2020
1 reply
7 views

I purchased QB accounting software last year. I do bookkeeping for a few small companies. I am using Turbo tax for my 2019 taxes. Can I deduct the purchase of the QB accounting software? If so, where in Turbo Tax do I make that deduction? Under Business Expenses, I do not know where to add this cost?

Thank you in advance for your assistance.

GiseleD

Level 14

If you did bookkeeping as a self-employed activity, you can report it as an Office Expense or an Other Expense under the self-employment section. To enter self-employment income and expenses, follow these steps:

1) Once in your return, click Federal (left-hand menu bar)

2) Click Income & Expenses at the top.

3) Look for Self-employment income and expenses.

You may have to expand the choices in the Income & Expenses section to get this subsection to appear.

4) Click Start when you find this section, and follow the guided interview.

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Critter

Level 15

If you are new to being self employed, are not incorporated or in a partnership and are acting as your own bookkeeper and tax preparer you need to get educated ....

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income. So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf