Checkmark iconCan I Write This Off?

Can I write off a computer purchase?

TL;DR

Yes, you can generally write off a computer purchase if it is used for business purposes. However, the deduction depends on the extent of business use and whether you choose to expense it immediately or depreciate it over time.

Detailed Answer

A computer purchase can be deducted if it is used for business purposes. If the computer is used exclusively for business, you may deduct the full cost. If it is used for both personal and business purposes, you can only deduct the business-use percentage. You have the option to deduct the entire cost in the year of purchase under Section 179, or depreciate it over several years using the Modified Accelerated Cost Recovery System (MACRS). For example, if a computer costs $1,000 and is used 80% for business, you can deduct $800. Be aware that the Section 179 deduction has limits and may not be applicable if your total deductions exceed your business income.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation or Line 27a for other expenses if expensed under Section 179.

Real World Example

A freelance graphic designer purchases a $2,000 computer. She uses it 90% for her design work and 10% for personal use. She opts to deduct $1,800 (90% of $2,000) under Section 179 in the year of purchase, reducing her taxable income significantly.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing the time or usage for business by total time or usage. Multiply this percentage by the cost of the computer to determine the deductible amount.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records of the purchase, including receipts and proof of payment. Maintain a log or documentation showing the business versus personal use of the computer. This could include work schedules, usage logs, or client contracts to substantiate the business use percentage.

IRS Reference

IRS Publication 946, How to Depreciate Property; IRC §179.

Relevant Industries

FreelancersConsultantsGraphic DesignersIT ProfessionalsSmall Business Owners

Popular Related Pages

Related Questions

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 February 4, 2026

Back to Search