Computer deduction question

[Carol1862]

My DH took a consultant job with his prior company. We both use I-pads primarily and have an older laptop that we share so he bought himself a new laptop and uses it solely for work. I read on the IRS website that as long as he uses it solely for business it can be deducted in full (it was $800). How do they prove this?

Why am I asking? He wants to give me the new one and use the older one for his business. I’m worried that the IRS can actually make us prove somehow he used the new one solely for business. If that’s the case he will use the new one and I’ll keep using my older one.

 

[Surewhitey]

What are the chances they will look at such a small expense? I've never been audited, but I would think that they would be looking for the biggest number items. And I've heard that unless you make the big bucks they really don't want to mess with you.

I write off tools, mileage and home office (including my laptop) all the time (smaller numbers like yours). I won't sweat it until they come knocking & they'll likely be giving me $$ as I'm probably not going as far as I could. I just try to be as honest as I can.

 

[euro]

I think it is clear you know that what you are planning on doing is not legal (you bought it for business, you take the deduction, so you have to use it for business) - you are just trying to find out if you will get caught. Well, I think it is extraordinarily unlikely that you will get caught - unless they do a surprise on-site audit or something (not sure that's even a thing in all but massive fraud cases), they'll just take your word for it. And you will just have to live with the fact that you solely designed this scheme to chip the IRS (i.e. the rest of us...).

 

[CRLLS]

This sounds more like an ethics question, not a business tax question. For 5 years or so as a self-employed contract worker, I was never audited. I would give the IRS 1 in a million odds of detecting it. Computers have a 5 year write off period, period. Assuming a 25% tax bracket, is the $40 a year worth cheating for?

 

[Surewhitey]

I read that they already bought it & took the reduction in taxes. Either way you should do the legal, ethical thing.

 

[target2019]

My DH took a consultant job with his prior company. We both use I-pads primarily and have an older laptop that we share so he bought himself a new laptop and uses it solely for work. I read on the IRS website that as long as he uses it solely for business it can be deducted in full (it was $800). How do they prove this?

Why am I asking? He wants to give me the new one and use the older one for his business. I’m worried that the IRS can actually make us prove somehow he used the new one solely for business. If that’s the case he will use the new one and I’ll keep using my older one.

If you take the asset out of business use and use it personally, then their is a partial reverse of what you deducted.

Here's your dilemma. Many liberties can be taken with a business. You will "get away" with some, as the amount is relatively small to the USG. So you accumulate these artifacts over time and one day you may be audited, and it won't work in your favor. And you don't always fall into a trap of your own making. If you're associated with a business that is going for the gusto, so to speak, their audit can sweep you up.

The IRS does not have to prove you used the new equipment for personal use. You have to prove that you used it 100% for business. That is what you affirmed with your 1040 submission.

 

[Carol1862]

Ok got it. He will use the new one solely (yes solely) for his business. I’ll keep using my older one as will he for any personal use. Then, ethically, we are ok!

 

[Aerides]

I have a small business, and the only things I deduct are those I buy, and use exclusively, for that business. For that reason, I don't carve out things like wifi, my home printer, stuff I use for dual-purposes (home and personal).

I don't make the decision on "well I won't get caught" but what is correct. I have enough money not to fudge these things, and it's just not worth it to fib even if I can expect to get away with whatever it is.

 

[target2019]

Ok got it. He will use the new one solely (yes solely) for his business. I’ll keep using my older one as will he for any personal use. Then, ethically, we are ok!

I cast my vote for a new computer for the loyal mate.

 

[Rustward]

Ok got it. He will use the new one solely (yes solely) for his business. I’ll keep using my older one as will he for any personal use. Then, ethically, we are ok!