Question

Camera and laptop deduction for different businesses

Forum|Forum|6 years ago
March 21, 2020
1 reply
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I have both self employed photography and real estate rental income. I bought a camera and a laptop for under $2500 each. I use them in both 'businesses' although I don't think rental income is categorized as a 'business'. I don't have enough photography income to offset these purchases so I am wondering if I could put them under rental income as full cost expenses (section 179). I'm not that interested in depreciation or carry forward as it's a lot to keep track of.

TurboTax Self Employed Online

RobertG

If they are under $2,500 each, you can deduct them as expenses for your photography business without using code section 179.

You may use the de minimus safe harbor election to deduct amounts up to $2,500 per invoice or item (as substantiated by invoice).

You do not need to report the election, just claim the items as expenses.

The de minimis safe harbor election eliminates the burden of determining whether every small-dollar expenditure for the acquisition or production of property is properly deductible or capitalizable. If you elect to use the de minimis safe harbor, you don't have to capitalize the cost of qualifying de minimis acquisitions or improvements.

See the IRS website: A de minimis safe harbor election

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