Can I Write This Off?

Can I write off a business laptop?

TL;DR

Yes, you can write off a business laptop if it is used primarily for business purposes.

Detailed Answer

A business laptop is deductible as a business expense if it is used more than 50% of the time for business purposes. If the laptop is used for both personal and business purposes, only the portion of the expense that is related to business use can be deducted. For example, if a laptop is used 70% for business and 30% for personal use, you can deduct 70% of the cost. Additionally, you can choose to deduct the full cost in the year of purchase using Section 179, or depreciate the cost over several years.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 13 for depreciation or Line 20 for Section 179 deduction

Real World Example

A freelance graphic designer purchases a laptop for $1,500. They use it 80% of the time for designing client projects and 20% for personal use. They can deduct $1,200 (80% of $1,500) as a business expense.

Calculation Required

A calculation is required for this deduction.

Calculate the percentage of business use by dividing the hours used for business by the total hours used. Multiply this percentage by the cost of the laptop to determine the deductible amount.

Audit Risk & Documentation Tips

To minimize audit risk, keep detailed records of the laptop's business use, including a log of hours used for business versus personal purposes. Retain the purchase receipt and any relevant invoices. If claiming Section 179, ensure that the laptop is used more than 50% for business.

IRS Reference

IRS Publication 946, How to Depreciate Property; IRS Section 179

Relevant Industries

FreelancersSmall BusinessConsultantsIT Professionals

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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