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Returning Member
posted Jan 25, 2020 8:22:49 PM

Can I deduct a new laptop even if the university allowed you to borrow for free?

Hi TurboTax community! I'm reposting this because the previous post got marked as spam, but I genuinely believe there are questions here that haven't been answered elsewhere.

 

I recently purchased a new laptop that I primarily use for school assignments and side work. As such, I have a few questions and background information to help.

 

Background: Some courses require assignments to be submitted online or course material to be accessed from the website for the course.

 

In terms of work, I'm a consultant for a company and do all my work remotely (employer in WA, I live in/resident of CA). I do approximately 10hrs/week as a consultant with personal/school use of the laptop on a variable schedule. The laptop cost $3900 to purchase and was a replacement for my previous 4 1/2 year-old laptop (works but starting to become unreliable to use on-the-go).

 

 

-Question 1: Can I claim the laptop as an education expense? Based on other posts I've seen, it seems more likely than not I can, but given this background info I wonder if the situation changes.

 

-Question 2: If the university allows you to borrow laptops for free (for short-term daily basis before it must be returned or a fee is assessed), can I still deduct the laptop I purchased?

 

-Question 3: Since this laptop is used for multiple purposes (school, work, and personal use outside those hours), do I need to split up the time spent between the multiple uses and proportionally allocate the cost of the laptop?

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1 Replies
Expert Alumni
Jan 27, 2020 2:15:20 PM

Answer to Question 1:  I don't believe that the IRS would allow the cost of this laptop as an education expense; I, personally, wouldn't claim it.  Laptops can be deducted if they're required to be bought for class and, if you'll see the TurboTax article "Can I deduct a computer or laptop that I bought for school?", the laptop in the example is "required" because of an online-only course.  The fact that the university allows the borrowing of laptops for free would seem to undermine any "requirement."

Answer to Question 2:  Again, this doesn't seem to bolster the "required" laptop argument.

Answer to Question 3:  If you're not an employee in your remote work, (i.e., your pay isn't reflected on a Form W-2, but a 1099-MISC), then you may be able to apportion costs for that purpose and claim a deduction from self-employment income.