Small Cash Business

[sheinrich1983]

My husband and I are both W-2 works and have not dependents to claim.

We started a small cash business selling wood off of our 20 acres. We purchased a side by side, log splitter, trailer and chain saw. Can I use all these as a write off? Do I enter them under assets?

[MaryK4]

Yes, you can add as business assets and deduct the costs associated with the depreciation.  

[sheinrich1983]

We purchased all items in 2024 except the chain saw. Can we claim 100% of the cost of the items purchased in 2024?

[Vanessa A]

It depends on the cost.  You would list these items as assets and if they are less than $2,500 it will give you the option to fully expense the equipment. 

What is a Section 179 deduction?

[sheinrich1983]

We purchased all items in 2024 except the chain saw. Can we claim 100% of the cost of the items purchased in 2024.

[DawnC]

When you purchase items for your business, you can either deduct the full cost of the expense at once, or you can deduct the cost over multiple years (depreciation).  

The De Minimis Safe Harbor election lets you deduct the full cost of items worth $2,500 or less, instead of depreciating.  The election is available for Schedule C businesses, rentals, farms, and farm rentals.

For instructions on claiming the De Minimis Safe Harbor Election in TurboTax, see the TurboTax FAQ below and select your product.

Expensing Assets with the Safe Harbor Election

For items over $2500, you may be able to depreciate them 100% - but this is entered in the Assets/Depreciation screen.   See Section 179 - Business Assets  

[sheinrich1983]

The side by side was $24,472.00 and we use it 70% for business. Turbo website let me keep it on as an asset is that correct since it's over $2,500? We purchased it new and paid for it.