business equipment ordered but never delivered

[firemanwilbur]

I ordered a 3d printer as a PRE-Order 2 years ago and have not seen it yet. I have since noticed last year that the website is not active and no longer responding to messages. Can I and how do I claim the loss this year (2018 tax year)?

[ZTaxPro]

Since you paid for the item you should be able to just take it as an expense in your business. Generally for large items we hold off depreciating the item until you put it in service. But since you will not receive the printer it is just an expenses of the business.

[firemanwilbur]

Let me give a bit more info. I paid it out of my own funds, none from the business, with the intention of placing it in service in the business as an asset. Since I never received it I never claimed it as in service as an asset for the business. I decided to give it till this year to deal with. How do I claim it as a loss now? Place it in service then claim the loss?

[NCperson]

sounds like a personal expense to me since it was paid from personal funds.   Good reason to always keep personal and business payments separate so there is evidenced documentation that proves the intent.  Ugh.