Question

depreciate vs expense laptop

Forum|Forum|2 years ago
October 12, 2023
1 reply
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Hello,

If a laptop is used partially to manage rentals, should it be expensed or depreciated.

Two corner cases:

* The usage drops below 50% (I think in that case it can't be expensed)

* The laptop is bought and disposed of the same year (what's best then?)

Thanks.

M

Mike9241

under the tax laws should you acquire and dispose of a depreciable asset in the same tax year no depreciation is allowed. you get a loss on the business portion or just take a deduction.

see this link about expensing the first year. since the de minimums amount is $2500 i would take that to be the business portion. if you decide to depreciate it, then if business use drops below 50% in a future year and you took section 179 or special depreciation section 168k the excess gets recaptured. https://ttlc.intuit.com/turbotax-support/en-us/help-article/business-tax-credits-deductions/expense-depreciate-business-safe-harbor-election/L4w6QowEr_US_en_US