If you are independently contracted can you write off a lap top if you use it for business reasons?

Question

What can you write off if you work for your self?

Answer 1

If you're self-employed, you can depreciate the basis of the laptop up to its business use percentage. If you don't use it 100% for business, then you can't depreciate it at 100%. Also, a computer is "listed property," so you have to keep records regarding the business use you claim.

If your business use is over 50%, you may be able to take a "Section 179" deduction and write off the business use percentage in the year of purchase rather than depreciating the computer over five years.

Here's an example assuming you purchased your laptop for $1,500 and use it 50% for business:

Laptop cost basis $1,500
X Business use % 50%
= Depreciable Basis $ 750

The depreciable basis is either the amount you deduct under Section 179 or the amount you depreciate over 5 years.

If you're an employee, your employer has to require you to provide and use your own laptop in order for you to be able to receive any deduction.

Answer 2

Yes you can, and it will be an asset that you will need to deprecate. However, you may use Section 179 to “write off” the total cost, by taking all the deprecation expense in the year of purchase.
Take a look at the IRS guide for deprecation, and look at the sections labeled: listed property & Section 179. Note that a computer is a special type of property identified by the IRS as listed property and it’s subject to limitations on the amount of the deduction.
Something else to think about as well, is it used for 100% business or some percentage personal use? If you use it lets say 10% personal, then you can only take a deduction up to 90% of the total cost.
When in doubt contact your CPA for help.

Answer 3

The laptop can be either written off (depending on your net income) or depreciated over 5 years. Other expenses include advertising, business insurance, home office deduction, postage, auto mileage @ $0.485 per mile (better than using actual expense), professional fees, meals & entertainment, training, business supplies, cell phone. The list could go on. If the expense is in the normal course of doing businss, you can deduct it. You can not deduct business suits or other personal items that you need to get to work. Consult a tax professional to help you through this first year.

Answer 4

Generally yes, but since the laws regarding taxes and deductions are so complicated, you'd be better off asking a tax consultant.

Answer 5

You can write off anything that is used for business.. as long as it is used predominantly for business. There is more involved, so to be safe, contact a tax advisor.

Answer 6

You may have to consider it a business asset an depreciate it over time. A tax attorney or CPA can tell you what to do and how.

Answer 7

Of course. Any expenses that you accrue while starting or running a business are considered expenses that can be included on your tax return.

Answer 8

everything, from gas and oil changes, to your business cards and licenses. Even your clothes and some meals while working. As long as you keep record, you can claim it.

Answer 9

Yes you can.