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delagarzabowers9
New Member

Home and business vs deluxe

past years i have done home and business due to being a 1099 ind contractor for a company.  i dont know if i am still on their list as an employee,  i havent spoken with them all year and did not receive any work from them, but i did purchase items to assist in the work should i have received it.  should i still do the business home version so i can write off the items i purchased since they were solely for that employment
1 Reply
DS30
New Member

Home and business vs deluxe

Yes you will still want to use TurboTax Home and Business as long as you still own your self-employment business (even if you had no income for the current tax return).

Depending how much you spent on these items will determine if you report them under expenses or as assets.

To enter your equipment purchases in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Business"” tab
  2. Next click on “I’ll choose what I work on” (jump to full list)
  3. Scroll down the screen until to come to the section “Business Income and Expense
  4. Choose “Profit or Loss from Business ” and select start/revisit/update.
  5. If your business is already listed, choose to "edit"
  6. You will eventually get to a screen titled "Your () Business"

If each piece of equipment is less than $200 per item, you can include the tools under Business Expenses > Other Common Business Expenses (start/update) > Other Miscellaneous Expenses (start/update)

You can enter your tool expenses (as one total amount) here. You may want to title these expenses as "Small tools" (see screenshot)

If however a piece of equipment is substantially more than $200, you will need to enter each item (the rest can still be expensed as above) that is over this amount individually as an asset (you will still be able to claim the full expense as an IRC section 179 deduction if she has enough income to offset this deduction. Otherwise you will be able to take a depreciation expenses over the life of the items).

Enter each asset under the Your () Business Summary page under assets. Follow the TurboTax guidance to help you enter this information.

Please refer to this IRS link for more information about business expenses:

https://www.irs.gov/publications/p334/ch08.html#en_US_2014_publink1000313521


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