Let me try to simplify the correct action and options for 2021. First, we cannot use information that has not occurred yet. What this means is that it is interesting that your intent is to use it 60% of the time for business in future years, but it's not yet a fact.
- Note: Time of use for business vs time of use for all purposes (personal purposes) is the correct way to determine business use percentage.
In 2021, you can make the De Minimis Safe Harbor election (business asset cost less than $2,500) and deduct only 21% of your computer expense. This is a reasonable assumption because if you were depreciating the item, you could depreciate 20% of the 21% of the cost in year one under the regular depreciation method. IRS FAQs for De Minimis Safe Harbor
- Navigate to the Other Common Business Expenses section to enter the deduction under Other Miscellaneous Expenses. Enter a De Minimis Safe Harbor as your description and enter the 21% amount.
OR
You can choose to depreciate the 21% business use portion of the cost in 2021 (recommendation would be to use the allowable election above). This means you would get 20% of the 21% business use percentage as your depreciation deduction if you enter the computer asset that has a 5 year recovery period.
If you choose to use the election in 2021, then in 2022 when the business use percentage changes you must depreciate the remaining business use balance. You will not be allowed to use the De Minimis Safe Harbor election after the first year an asset is placed in service.
- Cost x business use percentage - the amount expensed in 2021 = cost basis used for depreciation in 2022.
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