I incorporated my business as a single member LLC (SMLLC) and started getting revenue in July of last year. I purchased a computer ($1,000) in December of the prior year so I could start the business and it has been used 70% for the business since purchase. Can 70% of the purchase price ($700) be deducted as a startup expense or would a fair market value have to be used? This is assuming I don't have startup expenses totaling over $5,000.
If I had to depreciate it instead of treating it as a startup cost, could I use first year "bonus depreciation" to deduct the full $700 (70% of $1,000)?
