I started my small business in 2023, can I deduct the total amount of money I spent on purchasing the heat presses, label printer,  vinyl cutter and new computer in 2023?

Yes, you likely can deduct the full cost of your business equipment purchased in 2023! The IRS provides two main options for this: 1. **Section 179 Deduction** - This allows you to deduct the full purchase price of qualifying equipment in the year you bought it (rather than depreciating it over several years). For 2023, the limit is $1,160,000, which should easily cover your heat presses, label printer, vinyl cutter, and computer. 2. **Bonus Depreciation** - For 2023, 80% bonus depreciation is available for qualified business assets, which would cover your equipment. To qualify for these deductions: - The equipment must be used for business purposes more than 50% of the time - The equipment must be put into service during the 2023 tax year When filing: - You'll need to complete Form 4562 (Depreciation and Amortization) - Keep detailed records of all purchases including receipts, dates, and business use Since you're a new business owner, I'd recommend consulting with a tax professional who can help ensure you're maximizing your deductions correctly based on your specific business situation. They can also help determine which method (Section 179 or bonus depreciation) would be most advantageous for your circumstances.

Great advice from Lena! I'd like to add a few important considerations for your 2023 equipment purchases: **Keep meticulous records** - Make sure you have receipts, invoices, and can document when each piece of equipment was "placed in service" (actually used for business). The IRS is strict about this. **Mixed-use items** - If you use that computer for both business and personal purposes, you can only deduct the business percentage. Keep a log of business vs. personal use. **State tax implications** - While federal tax allows these deductions, check your state's rules as they may differ from federal Section 179 or bonus depreciation rules. **Consider timing** - Since you're asking in 2025 about 2023 purchases, if you haven't filed your 2023 return yet, you still have time to claim these deductions. If you already filed without claiming them, you might need to file an amended return (Form 1040X). **Alternative Minimum Tax (AMT)** - For very large deductions, there could be AMT implications, though this is less common for small businesses. The equipment you mentioned (heat presses, vinyl cutter, label printer) sounds like a custom printing or embroidery business - these are definitely legitimate business assets that should qualify for the full deduction!