Where to enter cost of buying business?

Forum|Forum|11 months ago
April 8, 2025
1 reply
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For example, I bought the business for $300K and the majority of it was for the equipment required to run the business so I want to deduct the purchases of those

RobertB4444

The purchase of a business isn't a deduction, it's an investment. You will have the purchase price of the business as your basis in the business along with any further investments that you will make. When you sell the business somewhere down the road you will hopefully make a profit as well as earning money from the business in the intervening period. There is no deduction for investing money.

However, during the operation of the business you do get to deduct depreciation on all of the equipment that you bought. Enter the equipment into TurboTax and assign a portion of what you paid to each item. Different items depreciate at different rates but you will deduct a portion of what you paid for the equipment over the next several years.

@checkengineautomotiveaz

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