iMac at home: Tax Write-off?

[GimmeSlack12]

So I work from home a few times a month. I use my iMac to do all my work on those days. Is there a particular rule to being able to write-off the cost of the iMac? Or do I have to write-off a particular % of it's cost? I would say I work from home 5 days a month which is approximately 40 hours/month. This could be equated to 25% of my work hours per month.

Does this mean I can write off 25% of the total cost of the computer? Or can I write-off more? less? I'm searching the IRS pages for answers too, but anyone with experience of knowledge would greatly save me some time.

 

[Macky-Mac]

you work as an employee? if so, you may only be able to deduct the computer cost if your employer requires you to provide your own work space on the days you end up working at home, plus they also have to require that you provide your own computer to do the work.......if it's a matter of just being convenient for you to work at home instead of going to work in your usual space at their office, then you probably can't deduct any of the computer purchase.

If you do qualify, it's going to be based on how much you use the computer for business vs how much it's used for non-business stuff

Or at least that's how I remember the rule!

 

[Sun Baked]

You need to log the use if you want to deduct it, if it is used less than 50% for business you'd likely get a fail.

So if the kids use it to play games 2-4 hours a day and you only use it 5 days a month -- you'll likely be SOL.

Edit: if it is a employer requirement, there is a publication for using that... But stuff done for your convenience that isn't a job requirement is a bit tougher to claim.

 

[Sun Baked]

Depreciation on Computers or Cell Phones

You can claim a depreciation deduction for a computer or cell phone that you use in your work as an employee if its use is:

* For the convenience of your employer, and
* Required as a condition of your employment.

For the convenience of your employer. This means that your use of the computer or cell phone is for a substantial business reason of your employer. You must consider all facts in making this determination. Use of your computer or cell phone during your regular working hours to carry on your employer's business is generally for the convenience of your employer.

Required as a condition of your employment. This means that you cannot properly perform your duties without the computer or cell phone. Whether you can properly perform your duties without it depends on all the facts and circumstances. It is not necessary that your employer explicitly requires you to use your computer or cell phone. But neither is it enough that your employer merely states that your use of the item is a condition of your employment.

Example.

You are an engineer with an engineering firm. You occasionally take work home at night rather than work late at the office. You own and use a computer that is similar to the one you use at the office to complete your work at home. Since your use of the computer is not for the convenience of your employer and is not required as a condition of your employment, you cannot claim a depreciation deduction for it.
Which depreciation method to use. The depreciation method you use depends on whether you meet the more-than-50%-use test.

More-than-50%-use test met. You meet this test if you use the computer or cell phone more than 50% in your work. If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). In addition, you may be able to take the section 179 deduction for the year you place the item in service.

More-than-50%-use test not met. If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System (ADS). You also cannot claim the section 179 deduction. (But if you use your computer in a home office, see the exception below.)

Investment use. Your use of a computer or cell phone in connection with investments (described later under Other Expenses) does not count as use in your work. However, you can combine your investment use with your work use in figuring your depreciation deduction.

Exception for computer used in a home office. The more-than-50%-use test does not apply to a computer used only in a part of your home that meets the requirements described later under Home Office. You can claim accelerated depreciation using GDS for a computer used in a qualifying home office, even if you do not use it more than 50% in your work. You also may be able to take a section 179 deduction for the year you place the computer in service. See Computer used in a home office under How To Report, later.

More information. For more information on depreciation and the section 179 deduction for computers and other items used in a home office, see Business Furniture and Equipment in Publication 587. Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS.

Reporting your depreciation deduction. See How To Report, later, for information about reporting a deduction for depreciation.

You must keep records to prove your percentage of business and investment use.

Should be a start here in publication 529