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Employee

Question

Prepaid for Fixed assets

Forum|Forum|2 years ago
February 21, 2024
1 reply
0 views

Scorp - 1120S

I paid for fixed assets in 2023 but the equipment will not arrive and be installed until 2024. How should I show the transaction on my 2023 return? I put it as prepaid expenses.

TurboTax Business Windows

CountingcatAuthor

Employee

Forgot to mention, it is cash accounting.

Yes.

Fixed assets can only be depreciated when placed in service, i.e. in 2024.

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CountingcatAuthor

Employee

OK. But what do I do with the expense on this year's return. Is it considered a prepaid asset so that it shows up in the asset portion of the balance sheet in books and on the return? Or should it be somewhere else?