Computer Purchase

[jwhittaker]

HI I purchased a new computer for business, its used in 2 businesses and personal, do I write off the computer based on % in both businesses for the current year? The amortized option has over 15 years and computers don't last that long, I typically upgrade every 4-5 years.

[ColeenD3]

Computers are 5 year property. First, you will need to allocate the total cost to all activities that benefit from the asset. Then enter the allocated portion to each activity as is appropriate.

[mgarry3416]

Computers are 5 year property not 15 year property.  

Assuming you made no other asset purchases you could deduct the computer purchase (also assuming the business use is more than 50% business or less than 50% personal use) as Section 179  expense. 

You may want to talk to a tax professional depending on the size of your 2 businesses.   

[ColeenD3]

You would have to prorate the usage between the two businesses and personal use. For example, you might use it 20% for one business, 30 percent for the other and % personal use. You can depreciate over 5 years 20% of the cost and 30% of the cost, but he 50% personal use is not an expense.