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posted Jun 3, 2019 12:12:56 PM

I have a legal business but not open yet. I purchased equipment that I'm storing. Do I start depreciation the year I bought or can I wait till I'm using for the business?

I may not be open for business for a year or two, I'd like to wait till I start using the equipment to start depreciation deductions. I'm wondering if it matters that I bought and stored the equipment for two years.

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1 Best answer
Intuit Alumni
Jun 3, 2019 12:12:57 PM

No, it will not matter that the equipment was purchased and stored before you placed it into service with your business.

When you enter the asset for depreciation after you start using it, you will be asked for the date it was placed in service and you may be asked for the date of purchase.  It will not matter that they are not the same date.  The depreciation will begin on the date it is placed in service.

1 Replies
Intuit Alumni
Jun 3, 2019 12:12:57 PM

No, it will not matter that the equipment was purchased and stored before you placed it into service with your business.

When you enter the asset for depreciation after you start using it, you will be asked for the date it was placed in service and you may be asked for the date of purchase.  It will not matter that they are not the same date.  The depreciation will begin on the date it is placed in service.