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More than one computer for one person business

TL;DR

The cost of more than one computer for a one-person business is generally deductible if each computer is used for business purposes. However, personal use must be minimal, and the business use must be substantiated.

Detailed Answer

A one-person business can deduct the cost of multiple computers if they are necessary for business operations. Each computer must be used primarily for business purposes, and any personal use should be incidental. For example, a freelance graphic designer might need multiple computers for different design tasks or to run various software simultaneously. If a computer is used for both personal and business purposes, only the business-use portion is deductible. The deduction can be taken as a Section 179 expense, allowing for immediate expensing, or through depreciation over the computer's useful life. It's important to maintain records that justify the business necessity of each computer.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation or Line 27a for Section 179 expense.

Real World Example

A freelance web developer purchases two computers: one for coding and another for testing websites on different operating systems. The developer uses both computers primarily for business, with occasional personal use. The cost of both computers is deductible, with the business-use portion calculated if personal use is significant.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing the time the computer is used for business by the total time it's used. Multiply this percentage by the cost of the computer to determine the deductible amount.

Audit Risk & Documentation Tips

Moderate. Keep detailed records of the business necessity for each computer, including purchase receipts, usage logs, and any relevant contracts or client communications. Document the business-use percentage if the computer is used for both personal and business purposes.

IRS Reference

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

Relevant Industries

FreelancersConsultantsGraphic DesignersIT 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 February 4, 2026

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