Happy Easter Tax Preparer community!! My client has a meat smoking business (Yummy) and he had a meat smoker built. He paid a $9,000 deposit in May 2021 and paid the remaining $9,800 on January 4, 2022 when the meat smoker was completed and delivered. How do I handle the $9,000 deposit made in 2021? Thanks!
Type of entity depends on how to handle transaction. Schedule C - there is nothing to report on tax return until the year it's placed in service which sounds like 2022
1065/1120S/1120 - handle the same as any asset purchase except do no take depreciation
Type of entity depends on how to handle transaction. Schedule C - there is nothing to report on tax return until the year it's placed in service which sounds like 2022
1065/1120S/1120 - handle the same as any asset purchase except do no take depreciation
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