ORIGINALLY FOR TAX YEAR 2016; SEE Tax Year 2018 UPDATES (2019) - increased opportunities
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-...
https://www.irs.gov/newsroom/irs-issues-guidance-on-section-179-expenses-and-section-168g-depreciati...
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If you were to use the computer in your business more than 50% of the time, you could deduct the entire cost under a provision of the tax law called Section 179. Under Section 179, you can deduct in a single year the cost of tangible personal property (new or used) that you buy for your business, including computers, business equipment and machinery, and office furniture. There is a $500,000 annual limit on the amount you can deduct under Section 179 (indexed for inflation each year starting in 2016). See Section 179: What Every Business Owner Needs to Know for more information on Section 179.
However, since you use the computer for both business and personal purposes, your deduction is reduced by the percentage of your personal use. For example, if you use your computer 60% of the time for business and 40% of the time for personal use , you can deduct only 60% of the cost. If, as you say, your computer costs $1,000 you could only depreciate $600.
Take the Section 179 special depreciation option when entering this computer as a business asset acquired.
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67
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