Hi there, mrasphaltsealcoa.
Thank you for visiting the QuickBooks Community. I'll be sharing details on how assets work in QuickBooks Self-Employed. Also, I'll ensure you can add the piece of equipment to the correct category.
Assets are tangible items you use to run your business and generate income. These are usually larger purchases like computers, manufacturing equipment, furniture, and tools. Then, please know that if the purchase price of an asset is more than $2,500, you have to declare it as an asset. That also means you need to track its depreciation.
A new IRS rule (the De Minimis Expense Threshold) lets you deduct the whole cost of items less than $2,500 as an expense instead of an asset. That's why when you record this it deducts the entire amount as an expense. Additionally, when you claim business assets as an expense, you usually get a larger deduction. You can still claim items that are less than $2,500 as assets but some small businesses prefer to claim them as expenses.
Furthermore, if the equipment should record as an asset in QBSE, I suggest manually entering this entry into the program. Then, you can use the following categories below for assets in QuickBooks Self-Employed:
- Apps/software/web services (more than $200)
- Computers (more than $200)
- Copiers (more than $200)
- Furniture (more than $200)
- Other tools and equipment (more than $200)
- Phones (more than $200)
- Photo and video equipment (more than $200)
Then, I also suggest consulting an accountant before performing the process to ensure your records are in shipshape. They can provide suggestions on how to properly handle equipment, especially with the category to use for the transaction.
Lastly, you may refer to this article to view different details on how QBSE is designed to help you record your self-employed income and expenses: QuickBooks Self-Employed Overview. Also, track mileage, and prepare your Schedule C.
Don't hesitate to click the Reply button below if you have other concerns related to QBSE, I'm always around to help, mrasphaltsealcoa. Have a great day!
