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radnich4
New Member

Can I deduct my computer if it is used for work in my home office but was given as a gift a few years ago?

I work soley from home and have had the computer for a couple years but just read something that is making me think I can claim some form of depreciated value even though the computer was a gift.  The computer is used 90% for my work.
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Accepted Solutions
MiriamF
New Member

Can I deduct my computer if it is used for work in my home office but was given as a gift a few years ago?

Yes, you may count the depreciation of your computer as a business expense.

In Publication 551, the IRS says

To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you, its FMV at the time it was given to you, and any gift tax paid on it.

You will need to figure what percent of your computer's use is business, and what percent is personal. Figure percentage based upon the time spent in each category. If you work 8 hours a day and use your computer for personal use 2 hours a day, then your business percentage is 80%.

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1 Reply
MiriamF
New Member

Can I deduct my computer if it is used for work in my home office but was given as a gift a few years ago?

Yes, you may count the depreciation of your computer as a business expense.

In Publication 551, the IRS says

To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you, its FMV at the time it was given to you, and any gift tax paid on it.

You will need to figure what percent of your computer's use is business, and what percent is personal. Figure percentage based upon the time spent in each category. If you work 8 hours a day and use your computer for personal use 2 hours a day, then your business percentage is 80%.

View solution in original post

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