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Old 02-04-2011, 11:39 AM
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Join Date: Feb 2011
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Schedule C

Okay, so I am really trying to understand where everything should be placed on the Schedule C. However, there are still some things I am unsure of!

Can someone please tell me where I would list all of the "small tools/equipment" which were purchased? This amount is a few thousand dollars.

Thanks for your help! Also, I apologize if I have posted incorrectly to the thread!



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Old 02-04-2011, 01:24 PM
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Join Date: Oct 2010
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“Can someone please tell me where I would list all of the "small tools/equipment" which were purchased?”-----> Small tools/ equipment that usually have a life of a year or more, I guess, and increase the quality of your services are not deductible business expenses; However, you can recover the money you spent on those capital expenses through depreciation by allowing allowing you to deduct part of your cost each year. So, you’ll be able to recover your capital expenses over time. Figuring business expenses vs. capital expenses is not always clear cut. Since in general, the smalltools/equipment you acquire to use in your business is expected to last more than one year, you generally cannot deduct the entire cost as a business expense in the year you acquire them. By using Form 4562, you must spread the cost over more than one tax year and deduct part of it each year on Form 1040, Schedule C.
Please visit the link here for the form;http://www.irs.gov/pub/irs-pdf/f4562.pdf



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