I performed side work for a company that included labor and products. They reported those purchases along with my labor on a 1099 NEC. Where do I enter those expenses?

You would deduct the cost of the server or other equipment that was included on the Form 1099-NEC total as a business expense on your Schedule C for your self-employed business.

The Schedule C will use the Form 1099-NEC total as income for your business.  Then you can subtract the equipment cost as a miscellaneous business expense to subtract it from the income.  Using the miscellaneous expense category will allow you to type your own description and amount for the expense so that you can easily tell what the expense represents.

Use these steps to go to the Schedule C section of your return and get started if you don't already have the Schedule C.  

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “schedule c” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to schedule c”
• Click on the blue “Jump to schedule c” link

Once you have started the Schedule C, continue through that section to Add Income and enter the Form 1099-NEC plus any other income you received for that self-employed business.  

Then use the Add Expenses choice to enter the cost of the equipment.  Don't forget you can also claim other expenses related to your business.