Equipment Purchases on Schedule C?
Getting a head start on my taxes. Where does one list equipment purchases on a Schedule C? Under Part 2 or Part 5?
And before someone comments on getting a professional, I plan on having an accountant double check my figures.
Do a little research on the section 179 deduction which allows you to
deduct equipment expenses rather than to depreciate them over a
certain number of years (depending on the type of equipment).
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You would first enter it using Form 4562 (Listed Property)
To depreciate your property use Part 3 (MACRS) Line 19
To expense it use Part 1 (Section 179) Line 6
Then, the amount of depreciation or section 179 expense you elect would be transferred to Schedule C Part 2 Line 13.