Can I claim this as a business expense?

Question

I bought a high-powered laptop in late 2005, originally for a business venture. That business venture failed, so the laptop (for a period of maybe 2 months into the beginning of 2006) became a personal laptop. For the remainder of the year, however, I used my laptop as my primary business tool (I'm a software/web developer) for non-independent (W-2) work. In other words, I used my laptop on-site with the clients for which I worked for approximately 10 of the 12 months of 2006. Can I claim the cost (or a portion of the cost) as some kind of deduction?

Thanks in advance for your answers!

Tim

Answer 1

YES

You can deduction the depreciation for this computer, prorated to business vs personal use.

Your question left me wondering if you were an employee, a"statutory" employee or a independent contractor for those 10 months as that will affect how you make the initial tax entries to deduct this item. Since you mentioned a W-2, if you had taxes withheld then you are an employee and will have to itemize and use non-compensated employee expenses on form 2106. If no taxes were withheld even with a W-2 then you may be a "statutory employee and use schedule "C" as if you were an independent contractor.

Answer 2

You can take a depreciation deduction for the business use portion.