Question

Can I deduct my computer if I purchased it in December?

Forum|Forum|4 years ago
April 12, 2022
1 reply
0 views

I was a 1099 self contractor from July to December for a company, but they hired me on as a w2 employee in December. I purchased a new computer to use for the business in December. Can I deduct this for the full value of the item? (Even though it was purchased in December and I was also a w2 employee in December?)

ColeenD3

If you continue to use the computer for more than 50% in your business and you continue to use it for its 5-year useful life, then yes, you can take a Section 179 expense.

Note that if you fail to meet these conditions, you will need to recapture (pay tax on) the depreciation that you took and were not entitled to.

N

NatteecakesAuthor

What if I don't have a business in 2 years or I have to get another job?

V

Vanessa A

If you end your business, then you would have to recapture the depreciation you took. This means, if you paid $3,000 for the computer and closed your business next month, you would need to add that $3,000 back to your income and pay taxes on it in 2022.

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