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tax deduct a computer from last year?

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  • tax deduct a computer from last year?

    Hey all,

    I bought a computer in october 2016 to help with some 1099 that I am starting at the end of this year. I see this computer as necessary for my startup expenses. Is it still oaky to tax deduct from my 2017 taxes or is it too late? Thanks for the help.

  • #2
    See IRS Publication 535 Business Expenses, Chapter 7 Costs You Can Deduct or Capitalize and Chapter 8 Amortization.

    Generally you can deduct up $5K in legitimate business startup costs in the year the business begins and amortize the rest.

    However, the simple purchase of capital equipment in a prior year would not normally qualify as a business startup cost.

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    • #3
      To add to @spiritrider, you can contribute personally-owned property, including capital equipment, as a business owner to a business at the current FMV. Your CPA will need to help you with basis, deduction, etc.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #4
        While it is not a start up cost, it does fall under the Section 179 Deduction for qualifying property.  This deduction is separate from the Start Up Cost deduction.  It is taken for the year you put the property into service.  So if you put it into service in 2017, you can deduct it.

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