@Python0608 wrote:
Thank you for quick reply.
I understand the computer expenses as determined by depreciation. So how many years maximum can you deduct it? Assume I will continue the current gig.
If used less than 100% for business, you have to allocate the cost on a percentage basis, and you have to have some kind of reliable written record to show the IRS how you determined the percentage, if audited.
You would list the item as a business asset. There are two different ways to expense the asset in the year you buy it, instead of over the class life (which is probably 5 years), and if you qualify for either of those provisions, Turbotax will tell you. (If you use the asset less than 50% for business, you can only depreciate the business portion over the class life.)
Remember that if you fully depreciate or expense the cost, and then sell it used, that will be taxable business income.
