Effective 2018, there are no recordkeeping requirements for any business use of computers. The IRS had rigorous recordkeeping rules for these types of items to ensure they were strictly used for business purposes. Listed property typically includes items used for both personal and business purposes, such as cameras, printers, and computers. If you use the computer for both business and personal purposes (such as playing computer games), it no longer qualifies as "listed property" as per the Tax Cuts and Jobs Act effective 2018. To take advantage of Section 179, you must use the computer in your business more than 50 percent of the time. This includes computers, business equipment, machinery and office furniture. Under Section 179, you can deduct in a single year the cost of tangible personal property (new or used) that you buy for your business. If you can't use the de minimis safe harbor to deduct the cost of a computer in a single year, you'll likely be able to deduct the deduct the entire cost under a provision of the tax law called Section 179. When do you have to depreciate the cost of a computer? If it's more, you may have to use the Section 179 deduction. Yes, you can use de minimis safe harbor to deduct the cost of a computer under $2,500. Can you deduct the entire cost of a computer? Usually, you can deduct the entire depreciable cost in a single year instead of depreciating it over five years. There are several ways to deduct the cost of a computer.
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