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View Full Version : Tax Question - Percentage of computer to deduct?
happygal
02-27-2009, 08:10 AM
Wondering how you all have handled this. We bought a new computer this year to use for my WAH stuff. Now I'd be lying if I didn't admit that we use it for email and basic stuff like that too (it's a laptop and our desktop is in the basement). But it is primarily for my work.
For those of you in a similar situation, what percentage of your cost did you deduct on your taxes? I want to be honest.
For those of you in a similar situation, what percentage of your cost did you deduct on your taxes? I want to be honest.
photomom04
02-27-2009, 08:26 AM
To take a computer as a deduction it has to be used ONLY for work.. not "primarily".
If you meet that requirement and if I remember correctly, you can then take a one time deduction this year or it can be set up to take part this year and part next year.
If you meet that requirement and if I remember correctly, you can then take a one time deduction this year or it can be set up to take part this year and part next year.
happygal
02-27-2009, 02:17 PM
alright good to know...thanks!
pepoc
02-27-2009, 02:26 PM
To take a computer as a deduction it has to be used ONLY for work.. not "primarily".
If you meet that requirement and if I remember correctly, you can then take a one time deduction this year or it can be set up to take part this year and part next year.
I would not "play" around with the deduction either. A few years ago, my friend hand claimed her new pc after working from home for many years. She was audited and they actually had her send a diagnostic (for lack of a better word at the moment) that showed what programs were installed. Sadly, they saw the games and other stuff that was not work related and nit-picked every item she tried to deduct! When they came into her home to check her "home office" and saw a TV and kid's toys... they disallowed that also.
If you meet that requirement and if I remember correctly, you can then take a one time deduction this year or it can be set up to take part this year and part next year.
I would not "play" around with the deduction either. A few years ago, my friend hand claimed her new pc after working from home for many years. She was audited and they actually had her send a diagnostic (for lack of a better word at the moment) that showed what programs were installed. Sadly, they saw the games and other stuff that was not work related and nit-picked every item she tried to deduct! When they came into her home to check her "home office" and saw a TV and kid's toys... they disallowed that also.
bricin6
03-02-2009, 08:31 PM
In order to qualify for a home office deduction a place has to be dedicated to work. It can be a room or even part of a room as long as it's sole purpose is WAH. They have actually become more lenient about that recently. Claiming a home office is no longer the red flag it once was.
Re: the computer. If you use the computer for 75% work and 25% play you can certainly deduct the cost. If using a tax program, when you get to the Section 179 deductions, you would list the computer and type in the 75% and the price you paid. It would automatically figure out your deduction (say the puter was $1000, you could elect to section 179 $750). It is a one time deal but it is easier to do that than to try to depreciate over a few years. Depreciation is usually used only for mega expenses - like a $50000 file server or a new building.
Re: the computer. If you use the computer for 75% work and 25% play you can certainly deduct the cost. If using a tax program, when you get to the Section 179 deductions, you would list the computer and type in the 75% and the price you paid. It would automatically figure out your deduction (say the puter was $1000, you could elect to section 179 $750). It is a one time deal but it is easier to do that than to try to depreciate over a few years. Depreciation is usually used only for mega expenses - like a $50000 file server or a new building.
