Tax question-purchased laptop for work

[frannn]

I paid for a laptop to use just for work, as I telecommute 100% of the time. I was going to report it on my Sched A in full, under nonreimbursed business expenses, but am not sure if this will raise a red flag to the IRS. I have a receipt for the computer, but we also claim all of DH's work expenses (for the past 5 years), as he is NYPD. He has a lot of uniform and equip expenses, union dues, etc. My company's accountant said I should claim the full 898 I paid all at once this year, but I am not sure if the IRS will audit me. We are getting back a pretty large refund, and although 99% of my "ducks are in a row", I'm concerned of the time and effort it would take to deal with an audit if the IRS gets upset with us. I know you usually depreciate business equip, but there is section 179 stuff-does this qualify? I'm sure I could take some other home office deductions, but I don't think it's worth the effort. The only reason I am considering this is because it will get us an extra 235. back. What would you do?

 

[Tinkim]

I work at home also and I have claimed equipment depreciation several times. I always claim the full expense at once. I have had to do this twice for computers in the last several years and the amount is usually $1000+. Never had a problem and haven't been audited. I think it should be fine.

 

[welovedis]

I do the same as Tinkim, but I have an in-home business so I'm not sure exactly how we differ as far as that goes. Do you do your own taxes or pay an accountant, etc..to do them for you?

I used to do them myself until my business got bigger and now I pay my accountant to do them. He's an enrolled agent so if I get audited he is the one who goes and handles it for me.

GL!

 

[Brian Noble]

I had to buy a laptop for consulting (the university gets snippy about using their equipment in consultancies) and deducted it. However, my consultant business is a schedule C.

If you are truly using it *only* for work, I think you are entitled to the deduction. I would not forgo a legitimate deduction just because you *might* be audited. I would forgo any iffy ones, but this doesn't sound like an iffy one.

(Note: neither a lawyer nor an accountant, so my free advice is worth exactly what you paid for it.)