☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 1, 2019 12:11:58 AM

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.

0 1 825
1 Best answer
Intuit Alumni
Jun 1, 2019 12:12:00 AM

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%.

1 Replies
Intuit Alumni
Jun 1, 2019 12:12:00 AM

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%.