I bought a big purchase last year to start a business, but I have yet to start a business yet. I have a full time job as well. What Turbo tax is best for me and how should I claim any money if I can?

[ColeenD3]

 I am assuming it is an asset. You can't deduct an business asset without a business. If you begin your business in 2020, you will place that asset in service at that time. You have a number of ways to expense it, related to depreciation.

[skk1121]

So currently, I cant list that big purchase under any claim for 2019, but its not too late for 2020 if I start a business? I always thought that whatever you buy that year can only be claimed for that year. So this can work?

[ColeenD3 · Accepted solution]

That is the case for small expendable items. An asset works differently. To be depreciable, property must have a useful life that extends substantially beyond the year you place it in service.

You begin to claim depreciation when your property is placed in service for either use in a trade or business or the production of income. The placed in service date for your property is the date the property is ready and available for a specific use.

You can't place an asset in service if the business hasn't started yet.