Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 4 weeks ago

Tax 1099K Question for 2019 Taxes. How come I can put in dates for depreciated assets but not expenses?

Also, if I bought an item for my office in 2018 that I use in my 2019 business, does that mean I cannot claim that item as an expense in 2019 since I didn't buy it in 2019? Sorry if the questions are amateur, I am very new to this. 

4 Answers

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  • 4 weeks ago

    You cannot claim expenses you did not incur in 2019.

  • Anonymous
    4 weeks ago

    Again, hire someone. 

    For example, the question is when did you put the asset into service by the business, NOT when you bought it.  If you don't know what placing an asset into service means, you need help.If you did not immediately use an asset in the business, you cannot use the purchase price.  You must use the lesser of fair market value or the purchase price.  Your computer is NOT worth what you paid for it 2 years ago.

  • 4 weeks ago

    The dates reflect how much depreciation you can take in a particular time frame. Depreciation is an expense.

  • Anonymous
    4 weeks ago

    Dates are needed for depreciated assets because they are depreciated over multiple years.

    Expenses that are fully deductible in that specified tax year do not need a date. 

    "Also, if I bought an item for my office in 2018 that I use in my 2019 business, does that mean I cannot claim that item as an expense in 2019 since I didn't buy it in 2019?"

    Is your business a separate legal entity that purchased that item from you personally?  If not, probably not. Not only did you not buy it in that tax year, but you didn't buy it for your business because your business didn't exist. 

    Things can get way more complicated from here, but that's the basic gist.

    What does a 1099k have anything to do with this?

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