Question

Bought a business can i deduct the equipment and also the interest on the loan i took to buy the business

Forum|Forum|2 years ago
March 22, 2024
1 reply
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the business is base on selling purified drinking water so the equipment is to purify the water I used my home line of credit to payed for it, I'm pretty sure the interest is deductible but how do i do the equipment, is it the same amount i bought the business

TurboTax Online

PatriciaV

The equipment you purchased is a business asset, subject to depreciation. Depending on the cost, you may be able to claim accelerated depreciation (Section 179 or Special Depreciation) for up to 80% of the cost. The price of the business is an investment, which is not deductible on your tax return. The loan interest is a business expense.

Note that if you purchased a franchise, you may amortize the purchase cost over 15 years. This means you take a deduction equal to one-fifteenth of the cost each year.

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