Hi all,
I'm a bit confused about how to deduct the value for a computer I purchased in 2021.
I received a 1099-NEC, because for a period of time, I was technically employed as an independent contractor. I purchased a new computer that I used (and still use, though I am no longer a 1099 employee at my company) for my work and I would like to deduct that expense. I first tried to enter it as an asset under Section 179, but was presented with the option to enter it as an expense instead--I believe this is the De Minimis Safe Harbor deduction, where I would enter it under Miscellaneous expenses.
I've never done this before and so I want to make sure I'm not doing something wrong. Under Section 179, you are able to enter a percentage breakdown of how much an asset was used for your business, which I would do because the computer was only used for 50-60% business. Do I need to do this for the De Minimis? I didn't see the option to and entered the full value of the computer. However, the issue then is that the value of the computer exceeds my 1099-NEC earnings, so I was then asked during the review to clarify the "Investment at risk" boxes, which I am totally unfamiliar with.
I'd appreciate any guidance on how to best deduct the cost, or some of the cost, of the computer. Please let me know if I can clarify anything so you can better assist me! Thank you.
Jesse
