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Level 2
posted Nov 28, 2021 6:17:46 PM

Expense a machine

If I bought a machine and placed it in service (7 year property) for $8000 on June 1st, 2021. I want to expense the entire amount for this year. Is it possible I can do that under code 179? Also, if I can where do I put it on my taxes?

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1 Replies
Level 15
Nov 28, 2021 6:47:59 PM

the free edition does not do schedule C. you need to upgrade.  All CD/download product versions include Schedule C. Only the Self Employed version of the online product includes Schedule C. I'm assuming you have a schedule C or a single-member LLC business.  if you bought this as an employee to use in your work the cost is not deductible.

 

if this is for other than your schedule C, the business should be taking the deduction and depreciation would be reported on that return.

 

for your schedule C, you can take 179 for the full cost. however, you must have at least $8,000 of business income before this deduction. 179 can not produce a business loss.   however, you can elect 100% special depreciation 168(k) instead for the full cost. there is no business income limitation.