Question Can a laptop purchase be deducted? - Virtual Assistant Forums

#1 (**permalink**) 01-11-2009

Before I launch my business I MUST get a new laptop since the one I am currently using is the family computer and is being shared by 3 people in the house. My question is: If I purchase a laptop before I register my business with the City, State and Feds can I still claim it as a business expense on my 2009 tax return? Should I register my business first? Would I have to purchase the laptop using a bank account linked to the business or would it be o.k. if I purchased using my personal bank account?

Wendy

#2 (**permalink**) 01-11-2009

Yes you can claim the laptop on your taxes. And it doesn't matter if you use your business or personal account. There are other VA's on the forum more experienced with taxes then I am but I'm sure they'll tell you the same thing.

And here is the link to a book I recommend for getting educated on taxes for the self employed. Its well written in easy to understand terms...and very reasonably priced

Self Employed Tax Solutions

#3 (**permalink**) 01-11-2009

Wow! That is great news. Thank you for the book suggestion. It looks really good. I will put that on my list of books to purchase. I have SO much reading to do. Thank God I love to read.

#4 (**permalink**) 01-12-2009

Wendy, I've never herd of any rules about getting a business license, etc. before a purchase will be considered a tax deduction. Deb, thanks for the book link!

#5 (**permalink**) 01-12-2009

Thanks for the link to the book on self-employed taxes. I will have to get me a copy.

#6 (**permalink**) 01-12-2009

Your welcome ladies, it is a good book, she writes with a sense of humor which I like...keeps me from getting bored reading about taxes

#7 (**permalink**) 01-12-2009

Yes, you can deduct your computer even if you purchase it before you register your business. The date you can begin deducting the computer is the "placed in service date", which would be the date you begin using it for the business, it doesn't matter if the item is new or old.

#8 (**permalink**) 01-12-2009

While it's great to get input from forum members, when it comes to the IRS, the best advice should come from your CPA. You can deduct anything you want!!! Whether it ends up being allowed will be up to the IRS. Individuals who are self-employed, especially who take deductions for the use of a home are more likely to be audited. If it were me, I'd like the blessing of my tax accountant above reading a book. Look at it as a good referral source! Think of all the small business your accountant works with that could be a referral base for you.

#9 (**permalink**) 01-13-2009

Yes you can. It will be depreciated every year from the year that you purchased your laptop. Once your business files it's first tax year, you will be required to show proof of purchase and each year that the laptop is in use, it will depreciate but will be considered in your 1040A return.

Hope this helps,

#10 (**permalink**) 07-22-2010

Originally Posted by Gems Virtual Office

Yes you can claim the laptop on your taxes. And it doesn't matter if you use your business or personal account. There are other VA's on the forum more experienced with taxes then I am but I'm sure they'll tell you the same thing.

And here is the link to a book I recommend for getting educated on taxes for the self employed. Its well written in easy to understand terms...and very reasonably priced

Self Employed Tax Solutions

Thank you for listing this book as a resource. I will say that taxes are probably the scariest "unkown" when it comes to starting my VA business. I have added this to my must read list.

#11 (**permalink**) 07-23-2010

Originally Posted by Perfect Solutions

Yes you can... will be considered in your 1040A return.
Hope this helps,

When one has a business, you can't use a 1040A when filing because a business Schedule C is required (in most cases - unless a corp or partnership, then a Schedule K-1 is filed with your return instead of a Schedule C) as part of your return. Short explanation: A 1040A is used for W-2 income, allows only a few adjustments to income, you cannot itemize, and only some tax credits are allowed.

HTH a bit,