Is a laptop purchase tax deductible?
A laptop used for business purposes is tax deductible. You can deduct the portion of costs related to business use if you use a personal laptop for work. The laptop must be necessary for your work to qualify. You need to keep detailed records on the business versus personal use as well.
If laptops cost over $300, you deduct the cost over 2 years for laptops or 4 years for desktops. This is called depreciation. The total deduction is capped at $952 including VAT. Costs below this can be fully deducted in year one.
Other potential technology deduction costs include printers, phones, internet fees and office supplies. But you have to prove these specifically help your work. Teachers can potentially deduct study furniture to prepare lessons. Self-employed individuals have the most leeway for deductions. However, proportional business use costs can also be deducted by employees.
Supporting Your Deduction
To support your deduction, keep a daily laptop logbook for work and personal activities. Other documentation like receipts is also necessary. Consult a tax professional to understand all allowable deductions. Keep accurate records to justify your claims.