I got my first freelance gig! Woohoo! It starts this week and I’ll bill at the end of the job (in January) and they’ll have 30 days to pay. So, I won’t need to do sole-proprietor taxes for 2023, just 2024. However, the job would go MUCH smooth with a new computer.
Does anyone know if I can purchase the computer this year, and deduct it from next year taxes?
Much appreciate any help! I will get someone to do my taxes next year but I need to know this before I purchase. Thank you!
Just a personal opinion but I wouldn’t buy a new computer based on one freelance sale.
Awful lot can go sideways between now and end of January.
Would also recommend invoicing in 1/3rds. Better for cash flow. 1/3 up front, 1/3 at the halfway point, 1/3 upon final sign off.
Working for 2 months without any cash incoming is a tough spot. No leverage for you and no skin in the game for the client.