printer

Forum|Forum|1 year ago
May 22, 2024
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Hi,

Our client purchased a printer for us to enable them to claim a write-off and avoid direct payment for services rendered. As a result, we now have a printer for our office. TurboTax typically asks for a list of office equipment owned by the business to calculate depreciation values, similar to personal cars used for business purposes. How should we declare this situation within TurboTax and QuickBooks Online? It's a bit of a tricky question for me, and I'm unsure of the proper procedure.

Ask the Experts - Biz Tax - May 2024

Jennifer_A

If a client purchased a printer on your behalf in exchange for services you rendered, then you have a bartering scenario. So you have income to report such as the Fair Market Value of the printer. And your client has an expense to report such as the cost of the printer.

The starting point for the depreciation of the printer is the Fair Market Value, which is the basis of the printer once you have reported the barter income. So, while you can technically can add the printer to your depreciation schedule, it may be low enough in value and not required to be listed as an asset. If its too low in value to depreciate, then you can claim the printer as an expense. Here is a little more information regarding the safe harbor election: https://ttlc.intuit.com/turbotax-support/en-us/help-article/business-tax-credits-deductions/expense-depreciate-business-safe-harbor-election/L4w6QowEr_US_en_US

@Tsue

Edited 6/03/2024:2:20 PM PST

@tsukada2006