Checkmark iconCan I Write This Off?

Can I write off business use of a personal computer?

TL;DR

Yes, you can write off the business use of a personal computer if it is used for business purposes.

Detailed Answer

The expense of using a personal computer for business can be deductible if the computer is used regularly and exclusively for business purposes. If the computer is used for both personal and business activities, only the portion of the expenses that relate to business use is deductible. For instance, if you use your computer 60% of the time for business and 40% for personal use, you can deduct 60% of the expenses related to the computer.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 18 for depreciation or Line 27a for other expenses.

Real World Example

A freelance graphic designer uses their personal computer for designing client projects 70% of the time and for personal activities 30% of the time. They can deduct 70% of the computer's depreciation and related expenses 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. Apply this percentage to the total expenses to determine the deductible amount.

Audit Risk & Documentation Tips

Maintain a log of hours used for business versus personal purposes to substantiate the business use percentage. Keep receipts and records of all expenses related to the computer, including purchase receipts, repair costs, and any software used for business.

IRS Reference

IRS Publication 587, Business Use of Your Home; IRS Publication 946, How to Depreciate Property

Relevant Industries

FreelancersSmall BusinessConsultantsRemote Workers

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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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