List Computer in 2017 or 2018?

[TaxGuyBill]

My. 02. Since he had the computer in 2017 and placed it in service in 2017, it need to be listed 100% on the 2017 tax return.

What we had is a partial payment with a small Line of Credit, no different if he put the rest of it on a credit card.


Chris

If the De Minimis Election is used, it is not an "asset", and there is no "placed in service" date. It would be a supply. It is like ordering business cards on December 30th, 2017, but not receiving them until January 2nd 2018. That "supply" would be deductible in 2017 because that is when it was paid.


A direct Line of Credit with the seller is NOT the same as a third-party credit card. The deduction is for when the payment is made to the seller. In a Line of Credit with the seller, the seller received part in 2017 and part in 2018. With a credit card, the full payment to the seller was made in 2017 (via the credit card).

[ttbtaxes]

If the De Minimus election is made, I would compare the computer to an invoice for advertising because you've elected to treat that computer as a business expense under Section 162. You paid part of the invoice in 2017 and part in 2018. They are deductible in the amounts and years paid.

As TaxGuyBill pointed out, the unpaid amount at 12-31-17 is not akin to a purchase by credit card which is a three-party transaction. The OP engaged in a two-party transaction and the unpaid balance is an Account Payable deductible in 2018.