How to Write-Off Home Computer

The computer tax write-off is a deduction that is often misunderstood and missed as a legitimate tax deduction on your personal tax return. One of the most important steps to writing off your computer, is to first determine whether or not you are eligible.  Please read the following information to determine your eligibility.

Determining Use for Computer

In order to write off your computer you must determine what the primary use for it is. If it is solely for personal use, it would not be eligible for a write-off. If the computer was purchased for educational purposes, it is still considered to be personal use. The exception to this rule is when the computer is issued from the school and billed later through tuition. This would then be considered an educational use and can be written off. If you are self-employed, take the percentage of time that you spend doing business on it and that is the portion you can write off. Depreciation also factors into the cost when reporting and can be generally written off immediately under the Sec 179 immediate depreciation rules.  Employees need to meet 2 qualifications in order to write off their computers. First, the computer needs to be used for business only. Second, the cost needs to be at least 2% above your adjusted gross income (approximates your total income for year). If you fulfill both requirements, you can write off the computer.

Calculating Internet Deduction

Decide what percent of the time you spend doing business online. This could be checking emails, logging into your work PC or doing research online for a work project.  Many of today's work tools are now on the cloud and require internet availability where ever we go.  Once you determine the proper percentage, evaluate your monthly statement and take the percent you decided on for business use.

Please contact our office should you have any questions.

Bill Roeser, CPA, CFP


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