How to depreciate Equipment purchased in 2025, placed in service 2026

Bjukeman · ‎April 14, 2026

I paid for new equipment in December 2025, but did not receive it until March 2026. Since it wasn't in service in 2025, I can't expense it for 2025. Will there be a problem using this expense in 2026 if it was paid for in 2025?

PatriciaV

Yes, you are correct. Because the asset was not placed into service until tax year 2026, you would not report that asset until next year. The payment date isn't a factor in this case.

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PatriciaV

Yes, you are correct. Because the asset was not placed into service until tax year 2026, you would not report that asset until next year. The payment date isn't a factor in this case.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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How to depreciate Equipment purchased in 2025, placed in service 2026