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posted Jun 1, 2019 12:07:39 PM

Can I expense large purchases, like cryptocurrency miners($25000 worth), instead of depreciating them? If so, how would I do that in Turbo Tax 2017 Home and Business?

There are 12 of them. I only used them from Nov. 2017 to Feb. 2018. I sold them around Feb. 8, 2018 after ending my business. I don't understand why I would have to depreciate them for such a short time of use. I'm in the process of amending my 2017 return. If I must depreciate them will I get to deduct the remaining amount of there cost on my 2018 return since I used them for such a short time? 

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1 Best answer
Intuit Alumni
Jun 1, 2019 12:07:40 PM

Depreciating the miners is the proper way to enter the business expense in your 2017 tax return. 

Then in your 2018 tax return, you will indicate that each asset is no longer being used for business purposes.  You will then enter the date that the miner was sold, along with other details of the sale.  The remaining basis in the miners (your cost that was not depreciated) will be taken into account along with the sale price to determine whether you have a gain or a loss on the sale of your business equipment. 

1 Replies
Intuit Alumni
Jun 1, 2019 12:07:40 PM

Depreciating the miners is the proper way to enter the business expense in your 2017 tax return. 

Then in your 2018 tax return, you will indicate that each asset is no longer being used for business purposes.  You will then enter the date that the miner was sold, along with other details of the sale.  The remaining basis in the miners (your cost that was not depreciated) will be taken into account along with the sale price to determine whether you have a gain or a loss on the sale of your business equipment.