Business and personal use

[npsparkranger]

My wife has a flue teaching business and she bought a flute for $15,279. I listed this as a business expense under ‘all other expenses’ (along with several other expenses.) The flue will be used for an estimated 60% business related purposes and 40% personal use. How do I reflect this in my taxes? Is there a place to list this percentage? Do I just list 60% of the cost of the flute? I just want to do the right thing. Any advice will be greatly appreciated.

Thanks in advance!

Bill

[MarilynG · Accepted solution]

Yes, you could list the flute as a Business Expense and put the amount at 60%, the business estimated usage.

You could also enter it as a Business Asset, and there you give the total cost and state the 60% business use. You have several elections to choose from in that instance. 

Since it is an asset over $2500 you could also Depreciate it over several years. 

Any of these is acceptable. 

Click this link for more info about Managing Business Assets.

[Edited 03/23/2020 | 6:25 PM]