I had the same laptop for 4 years and never needed to upgrade until I got into IM and even then it was a year after I got into it and my old laptop started giving me too many problems with slowing down and taking up memory. I'm now thinking of purchasing LoJack for the laptop incase anybody steals it, it can be found. I'm wondering if that would be considered a business expense. I'm not too considered about the laptop itself as the value of the information on here.
are laptops tax deductible?
- Thread starter clownstep
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as far as i know, yes it is tax deductible. assuming that you report your earnings from your business in the first place. however, it's only really worth it if you're making enough money to where itemizing is helpful. otherwise you'd be better off just taking the standard deduction, which would save you more than calculating all your expenses (potentially). for instance if you only made like $15,000 last year, and the standard deduction for your income bracket/status is like $5,000, then you're better off just using the standard deduction than adding up all your expenses, if your expenses only add up to like 2 or 3 grand.
but if you're making a shit ton of cash then write off anything and everything! even that solid gold toilet!
A good rule of thumb is that equipment under $1000 should just be expensed (write the whole thing off). Over a grand, and you should usually capitalize it (- 20% a year or whatever). That's what I do anyway.
I've been asking around for tax advice for a while and nobody told me that. Even when I went to see a CPA, we started figuring out deductions and last year I made less than $20K gross. I've been spending all this time, trying to add up all my deductions.
Well, I don't need an accountant yet but, I'm going to go to a CPA next to file taxes. I just get paranoid easily so I wonder about this stuff. I've heard some people say unless it's 100% for your business then it can't be tax deductible. Although this laptop is only for business use, I actually really don't have any other interests, not even any games on here. There is music on here so that's why I was wondering.
well like i said, it may very well be in your best interests to add up your deductions, if you spent a lot (or at least can make it look like you spent a lot) on your business, and if the amount it adds up to is greater than your standard deduction then that's definitely the way to go.
i think the IRS website should have a calculator to tell you what your standard deduction is based on your income/marital status/dependents.
and as far as only writing off things that are 100% for business, that might be what the official rule is but i've seen people write off all kinds of things. when i used to work as an actor, we would write off virtually everything, from gasoline to razors. you gotta drive to the set, and you can't show up unshaven! if there is any way you could loosely interpret something for your business then i think you could get away with it. until you start making millions. then the IRS probably pays more attention.
FYI, you dont need to worry about the standard deduction vs itemized when it comes to business expenses. Expenses eat into your revenue, leaving you with profit. You only get taxed on your profit, not the revenue.
Write it off.... the real decision is what type of write off you do. Write it all off this year or depreciated over several years.
Write it off.... the real decision is what type of write off you do. Write it all off this year or depreciated over several years.
HarveyJ
He is - THE CACTUS!
I just got myself an Asus EEE as a tax write off (and salary sacrifice, so all up, it's costing me about AU$200... sweeet!).
You just need to get yourself a good creative accountant.
You just need to get yourself a good creative accountant.
It has nothing to with having a corp or itemizing ( completely separate discussion, deductions happen after expenses/income) or any of that stuff.
For me I depreciate all computer equipment. I am not sure the % or years schedule- I d it all with tax software and shit. For example, it might be deducted 1/5 over 5 years so 20% is deducted per year until its all written off. Something like that. AFAIK generally computers and other equipment are depreciated while other things like office supplies that are used up and other incidental things are expensed 100% right away. You know plus adveritsing, COGS, etc. A lot fo equipment that has a longer useful life is done differently. If you are a Sole Prop, you just do it on your schedule C.
If I finance it, I also write off the interest.
Honestly most of this stuff is explained in any tax program or book and pretty simple.
For me I depreciate all computer equipment. I am not sure the % or years schedule- I d it all with tax software and shit. For example, it might be deducted 1/5 over 5 years so 20% is deducted per year until its all written off. Something like that. AFAIK generally computers and other equipment are depreciated while other things like office supplies that are used up and other incidental things are expensed 100% right away. You know plus adveritsing, COGS, etc. A lot fo equipment that has a longer useful life is done differently. If you are a Sole Prop, you just do it on your schedule C.
If I finance it, I also write off the interest.
Honestly most of this stuff is explained in any tax program or book and pretty simple.
Yeah, that's what I was trying to say, I dont understand why people confuse the 2 so much.
Profit to the self employed is like wages to the W2 employee. Both are earned income. You arrive at personal earnings before you worry about personal deductions.
Why would you guys choose to write off a percentage of each year? Get the full write off THAT year on the laptop. What happens if the laptop goes to shit and you have to buy a new one? Well Little Billy Hopkins can't write off the percentage anymore can he? He gets pwnd by having to purchase another laptop.
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