Question

How do I add an asset if it wasnt used in 2020 but we bought it in 2020? What deprication should I use?

Forum|Forum|5 years ago
February 14, 2021
1 reply
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Started an LLC in October. We bought large equipment in November and only used one item. The other 4 are being used this year. Can I only list the one that was used and the other 4 for this year? Or do I list equipment for 2020 because that is when we bought it?

TurboTax Live Self Employed

DaveF1006

No, you enter the asset you put into service 2020 and you will add the remaining assets in 2021 because this is the year you put those assets to work in your business. Normally if you put into service during the last three months of the year, you use the mid-quarter convention. Please read this IRS article for more detailed information on how to handle depreciation for your business assets.

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