Using TT Self Employed. The computer is used for personal business (for the company that provides a W-2), for an LLC (sole proprietorship) that I own, and for two other LLCs that I partly own (partnerships) which will provide Schedule K's. The Partnerships have a non-reimbursement agreement that says that I'm responsible for expenses related to doing the job. Where do I deduct this in TurboTax? If I go to Business --> LLC #1, won't it make it seem like the computer is exclusively the property of LLC #1 and thus excessively eroding LLC #1's reported business income?
First, you will need to allocate the total cost to all activities that benefit from the asset. Then enter the allocated portion to each activity as is appropriate.
Expenses related to W-2 income would be entered as Job-Related Expenses for Schedule A (Itemized Deductions).
Unreimbursed partnership expenses are entered during the Schedule K-1 entry for Schedule E.
The portion for your sole proprietorship would be entered on Schedule C.
If the allocated cost for any activity would normally qualify to be depreciated (ie: generally over $500), note that any cost of $2,500 or less may be directly expensed under the Safe Harbor Election. This is found at the beginning of Assets/Depreciation under job expenses and Schedule C. If you take this election, it will apply to all your businesses for the tax year. The allocated cost is then entered as a Miscellaneous Expense.
If the allocated cost is less than $500, you may report this under any appropriate expense category for that activity.