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posted May 31, 2019 5:53:10 PM

I have a laptop I use for both business/personal as a consultant, that I bought 2 years ago. How do I treat this as an asset/expense as a self-employed individual?

I just this year started consulting on the side, but spent about $1400 on the laptop I'm using a couple years ago. I don't know if I can claim it or depreciate it or anything in my business assets or expenses moving forward but figured I might as well ask?

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1 Best answer
Level 9
May 31, 2019 5:53:11 PM

You would first determine the Fair Market Value of the computer (eBay, Craigslist, etc.) when you first used it for your business.

Then you can depreciate the business percentage of that Fair Market Value.

Unfortunately, the value of computers drop quickly, so the Fair Market Value may be fairly low.

Also, a computer is "Listed Property".  That basically means you need to keep proof of the business usage, such as time logs of when it was used for business versus used for personal usage.

1 Replies
Level 9
May 31, 2019 5:53:11 PM

You would first determine the Fair Market Value of the computer (eBay, Craigslist, etc.) when you first used it for your business.

Then you can depreciate the business percentage of that Fair Market Value.

Unfortunately, the value of computers drop quickly, so the Fair Market Value may be fairly low.

Also, a computer is "Listed Property".  That basically means you need to keep proof of the business usage, such as time logs of when it was used for business versus used for personal usage.