Do I claim my laptop, camera, & accessories as assets or deductions?

[pmata91]

Laptop was for personal use but is now business use and the camera and accessories were bought for the business.

[RyanH2 · Accepted solution]

Anything large that's integral to the functioning of your business, such as a laptop or camera that can have depreciating value, should be entered as an asset. Small things, such as accessories, should be entered as expenses.

An asset is a tangible resource that belongs to you or your business and is still worth something after a year or more. The best assets grow in value over time, but some lose their value too. Real estate typically goes up in value, whereas a car loses value, or depreciates heavily, in its first few years. However, both are still assets, because they retain value after a year.

An expense is money you may need to spend, but after a year, there is nothing lasting to show for it because the item gets consumed or is used up. Expenses include things like rent, food, utilities, clothes, office supplies and health insurance.