To set up your cello for depreciation:
1. Click Federal on
the left-hand side menu.
2. Click Income across
the top.
3. Scroll down to Self-Employment
and click Show more.
4. Click Start
or Revisit by Income and Expenses.
Click Edit to the
right of your business.
Scroll down and
either click Edit by Assets or Add expenses for this work.
To set up a new
asset (your cello) for depreciation:
- Click +Add an Asset.
- Select Tools, Machinery,
Equipment, Furniture, then Continue.
- Select General purpose tools,
machinery, and equipment, then Continue.
- Fill out the Tell Us About
This Asset page, then Continue.
Make sure you put the date you originally acquired it.
- Enter the usage percentage on
the next Tell Us More…page, then Continue.
- Enter your Section 179
Deduction in the prior year's box, then Continue.
- After your state's 179 info,
choose the correct MACRS convention.
If you need help determining that, see the blue Half-Year or
Mid-Quarter.
- Put your prior depreciation
taken (if the figure is incorrect), then Continue.
- You'll be at the Asset
Summary page, and finished.
