Where to deduct DVD Drive Costs?

[genie187]

Hi, I'm getting mixed information on where to deduct the cost of DVD burning drives.  Most sites seem to suggest they are treated as assets and should be depreciated or you can use section 179 or the safe harbor election.  However, for the depreciation, the IRS says

Depreciable or Not Depreciable
You may depreciate property that meets all the following requirements:

It must be property you own.
It must be used in a business or income-producing activity.
It must have a determinable useful life.
It must be expected to last more than one year.
It must not be excepted property. Excepted property (as described in Publication 946, How to Depreciate Property) includes certain intangible property, certain term interests, equipment used to build capital improvements, and property placed in service and disposed of in the same year.

While it may have a determinable useful life, it definitely isn't expected to last more than 1 year in my usage for burning.  Also, since they were placed into service and disposed of in the same year, it seems to violate the final rule.  So, would I simply be able to list them along with my other supplies on line 22 such as envelopes and shipping labels without worrying about depreciation or section 179 or the safe harbor election?  Also, does the price of the drives factor into this, as they are expensive proprietary drives (~$250 each).  

[Bsch4477 · Accepted solution]

List as supplies. 

[Mike9241]

if it's an employee business expense, the cost is not deductible. As a self-employed business expense, it is. 

[genie187]

Hi, yes, I'm self-employed.  I'm just trying to make sure the right way to deduct it, since I'm reading a lot about other computer equipment having to be depreciated (or section 179, safe harbor, etc.).  

[Critter-3]

Because each unit is less than $2500 then you can simply expense them ... either as supplies or office supplies or any other category you want to make up in the misc entry section. 

[genie187]

Hi, Critter.  Just to be sure, the de minimis safe harbor election isn't required for that right?  I seem to see that $2,500 number in relation to it.  

[Critter-3]

You can make the election in the program and simply expense them ... just follow the interview screens.

[genie187]

Hi, Critter, sorry for the late reply.  I'm still mulling this over.  I guess I'm still unsure why I have to take the election at all still based on the criteria I listed in my initial post.  I may be misunderstanding, but I was assuming since the drives aren't eligible for depreciation, I could simply consider them supplies (like ink, for example) and deduct them on line 22 of Schedule C.

[Critter-3]

You are the one making this more difficult ... my original answer stands :

Because each unit is less than $2500 then you can simply expense them ... either as supplies or office supplies or any other category you want to make up in the misc entry section.