I am a 1099 contracted worker. I purchased a computer in 2017 to help with my job. Can I deduct the full amount, partial amount? Do I have to have anything else for IRS?

[kerriP · Accepted solution]

The costs of operating your business includes any expenses which are ordinary and necessary. If you are using your computer primarily for business purposes then you can deduct the cost of your computer as a business expenses on schedule C.  The general rule is that if the cost is less than $2500 you can claim it as a miscellaneous expense.  If the cost is greater than $2500, you would enter it as an asset and depreciate the cost over 3 years.  If you are using it 50% business and 50% personal you can claim half of the cost of the computer.

[dgreenegretz]

What is the cost of my computer was $2423.00 but after taxes was $2557.00? can I deduct the cost of the computer only and omit the sales tax? I am self employed and use the computer entirely for work.

[DavidD66]

@dgreenegretz If you deduct the entire cost of your computer by taking a Section 179 deduction, if your business shows a net profit on Schedule C.  Otherwise, you will have to depreciate the cost over three years.  For more information on Section 179 deductions, see the following TurboTax Help article: What is a Section 179 deduction?

To take a Section 179 expense in TurboTax, the program will give you the option in the asset entry section to check a box indicating  " I'll deduct the full value of the item this year. (Take the Section 179 deduction)".