Is it ever okay to allow your business printer or your business computer to be used for anything other than business?

[danielle-51]

We are a small family business, an LLC, taxed as a partnership. Some of us were discussing whether or not it is okay to allow occasional personal use of our business printer and our business computer for things other than business. For obvious tax purposes, we do not want to allow even occasional use if this is not right to do so. Both the printer and the computer were expensed 100% for business on our tax return a few years ago. That is why I am thinking it is not okay for either if them to be used at all for anything other than srictly business. There was no allowance made on the tax return for personal use. It is easy and convenient to be able to use it occasionally for personal use, but we want to draw the line where it needs to be drawn, and then stick to it. It is much easier for me to draw a hard line, and say,"No", than it is to try and figure out what might or might not be oaky. That is why I am asking for help from someone who knows.  I would rather just get a new printer and computer for the shop, and let the two older ones be for those "personal use" times, if that is what we need to do.  Thank you.

[tagteam]

Technically, there should be (or should have been) some sort of allocation.

However, if the personal use is de minimis, it's probably not a major issue at this point although separate printers for personal use would be the best route.

[danielle-51]

When you say there should have been some sort of allocation, you are talking about initially, right? Meaning there should have been an allocation on the tax return when it was first expensed. I totally agree, and it has been very minimal, but it will not continue.

That was the very point I made when it was being discussed...that we cannot use it for anything ever that is personal because they were expensed 100%  for business.

I needed a reference from someone who knows so that I can prove what is exactly right to those who might have a question about our new policy. Thank you. If I am not understanding correctly, please let me know.

[tagteam]

It's as simple as this: business property is business property and, in general, an allocation must be made for personal use (i.e., subtracted from the deduction for the use of the business property).

The point I was making was the IRS is not overly concerned with de minimis use as they understand that it is relatively commonplace. 

[Opus 17]

@danielle-51 

"de minimis" is a latin (fancy legal) term for "minimal."  If you routinely use the computer for both personal and business use, you should allocate the percentage based on some method of determining use, for instance if the computer and printer is used 20% for personal, then only 80% of the cost is a business cost.   However, if the personal use is rare, occasional and minimal, then you can ignore it.

I can't find a strict number, but I recall this example from a discussion about the home office deduction.  Suppose you use a spare bedroom as a home office and you meet the exclusivity rule, the bedroom is only ever used for business.  But, you have personal items stored in the closet, and you must occasionally enter the office to access the closet.  While this is a "non-business" use of the home office (walking across the floor to get to the closet), it is also considered de minimis, or so minor that the IRS doesn't care.  

[tagteam]

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@Opus 17 wrote:

If you routinely use the computer for both personal and business use, you should allocate....

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They can't since the computer/printer (or whatever) has already been expensed.

If the personal usage will be more than minimal, they should probably just purchase a computer and printer that will be used exclusively for personal purposes.

[Opus 17]

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@tagteam wrote:

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@Opus 17 wrote:

If you routinely use the computer for both personal and business use, you should allocate....

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They can't since the computer/printer (or whatever) has already been expensed.

If the personal usage will be more than minimal, they should probably just purchase a computer and printer that will be used exclusively for personal purposes.

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Fair.  Should have been allocated...