Can I Write Off a Laptop?

Question

I recently got hired by the Home Shopping Network as a Work at Home Representative. I have to work exclusively from my own home. They require me to have a computer to work from and a headset telephone and to get local telephone service. Under regular circumstances I wouldn't buy these things. Is it possible for me to write these things off on my taxes?

Answer 1

You will be able to write off the laptop, the headset telephone, and the business portion of your local telephone service (unless its a second line used exclusively for work, then you can write off all of it).

If you are considered an independent contractor, all of these expenses will be deducted on Schedule C.

If you are an employee, then you can write these expenses off on form 2106 as an itemized deduction. These expenses can only be deducted if they exceed 2% of your Adjusted Gross Income though. If you get reimbursed by HSN for any of these deductions, then you will need to reduce your deductions by this amount.

If possible, make a separate area to work that can qualify as a home office. You may be able to have additional deductions as well.

Answer 2

Will you be working as an employee, or as an independent contractor? That will make a difference in how you write off your expenses, and how much of them you can write off.

If you use it just for business, then you can most likely write off the laptop - if you also use it for personal use, then you need to prorate it. Same for the local telephone service.

The headset you can almost surely write off since you'd just be using that for business.

If you have a room in your home that you use exclusively and regularly for business, you can probably also take a home office deduction.

Answer 3

you can write off some of the expenses for your home office, but this falls into the category of 2% miscellaneous itemized deductions. This means that the total of the deductions in this category must exceed 2% of your Adjusted Gross Income (salary, dividends, interest, etc.). for instance, if your adjusted gross income is 50,000, the 2% itemized deductions must exceed $1,000 and the amount over $1,000 will be deductible.
Your tax preparer will also need to know the square footage of your office compared to the rest of your home. you can write off a portion of your utility bills. keep up with anything your purchase for use for your job.
Also, you can Section 179 your computer, which basically means, you can write it off (if you exceed the 2% threshhold). Be sure to keep the receipt and take it to your tax preparer along with your other information when you do your taxes for 2007.

Answer 4

You can write it off if you use it for business purposes and itemize your taxes (Schedule C).