topic Re: Computer Purchase in Business & farm

Computer Purchase

jwhittaker — Sat, 06 Mar 2021 20:16:39 GMT

HI I purchased a new computer for business, its used in 2 businesses and personal, do I write off the computer based on % in both businesses for the current year? The amortized option has over 15 years and computers don't last that long, I typically upgrade every 4-5 years.

Re: Computer Purchase

ColeenD3 — Sat, 06 Mar 2021 20:40:26 GMT

Computers are 5 year property. First, you will need to allocate the total cost to all activities that benefit from the asset. Then enter the allocated portion to each activity as is appropriate.

Re: Computer Purchase

mgarry3416 — Sat, 06 Mar 2021 22:34:52 GMT

Computers are 5 year property not 15 year property.

Assuming you made no other asset purchases you could deduct the computer purchase (also assuming the business use is more than 50% business or less than 50% personal use) as Section 179 expense.

You may want to talk to a tax professional depending on the size of your 2 businesses.

Re: Computer Purchase

ColeenD3 — Sun, 07 Mar 2021 15:20:12 GMT

You would have to prorate the usage between the two businesses and personal use. For example, you might use it 20% for one business, 30 percent for the other and % personal use. You can depreciate over 5 years 20% of the cost and 30% of the cost, but he 50% personal use is not an expense.