Can a computer used only 20% of the time for business be deducted under the de minimis safe harbor election? Do I deduct only 20% of the purchase price?

[PaulaM · Accepted solution]

Yes, you can make the De Minimus Safe Harbor election and deduct only 20% of your computer expense. This is a reasonable assumption because if you were depreciating the item, you could depreciate 20% of the expense.

First make the election in the Asset section. The election will be listed on a form titled Section 1.263(a)-1(f). Then navigate to the Other Common Business Expenses section to enter the deduction under Other Miscellaneous Expenses. Enter a De Minimus Safe Harbor as your description and enter the 20% amount.

[ja1]

Thanks. I am using TurboTax Deluxe desktop, and I can't find the Other Common Business Expenses section. There is a "Business Expenses" section with an "All other expenses" subsection that I can walk through to a "Enter Business Expenses Not Yet Reported" page. Is this the right area?

[PaulaM]

That is the correct location for Deluxe-Enter Business Expenses Not Yet Reported.  Path is slightly different but result is the same.