How to enter items in Sch C?

[sam992116]

@VolvoGirl @Anonymous_ 

Thank you for you thoughtful input. I was suspicious about it and that's why I asked here. In TT interview it was not clear what could be asset as they don't specify items listed as business expense can't be used as business asset.

In general under which situations one want to deduct an item (lets say I bought a computer this year) as business expense vs list as asset and depreciate it over years?

I am assuming Bonus depreciation like section 179 only apply If I want to list it as business asset VS listing an item as business expense?

If I am in high tax bracket this year (I can't predict next years income) so it is more tax advantage to take it as business expense this year and done with it because of higher tax savings?

Thanks again.

[VolvoGirl]

Have you seen this article?  See this article for expensing or depreciating Assets

What can I expense or depreciate with the business...

[sam992116]

@Anonymous_ 

Thanks for clarifying.

 I am assuming di minimis harbor rule has same catch either your will deduct as business expense or use di minimus harbor deduction?

I am correct it is $2500 per items so a computer can be $2400 and monitors like $300 a piece as they are sold separately etc.

What is advantage of using di minimis harbor deduction vs business expense deduction as both are on Sch C interview?

Thanks

[sam992116]

@VolvoGirl 

Thanks and now it make sense.

I only have business expense deduction. I don't have HOME OFFICE deduction (Home office deduction needs income on Sch C which I don't have as a Trader with TTS and no 475 election) so I don't  have traditional office related expenses like for office related goods like improvement to either office or office equipment.

That's why I did not pay much attention to de minimis harbor rules. Thanks for your help and article.

[sam992116]

@Anonymous_ @VolvoGirl 

Thank so much and it is much clear now.