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April 14, 2025
Question

Can I deduct a laptop both as a business startup cost and as asset being depreciated under business assets?

  • April 14, 2025
  • 2 replies
  • 0 views

I'm ran a sole proprietorship business and I put the new laptop in startup costs but can I also include as an asset under other common business expenses? Laptop purchase is under 2500.

2 replies

April 14, 2025

No, you cannot claim it twice.  Pick one option only. 

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jlvasAuthor
April 14, 2025

Sorry I meant business asset ->asset being depreciated is what I meant. I updated the subject

jlvasAuthor
April 14, 2025

Same apply?

April 15, 2025

You cannot deduct a laptop both as a business startup cost and as a depreciable business asset; you must choose one method. If you include the laptop cost as part of your startup expenses, it is considered already claimed and amortized as a startup cost. In that case, you cannot also list it separately as a business asset to depreciate over time. Conversely, if you treat the laptop as a business asset, you capitalize it and depreciate it (or possibly expense it under Section 179 if eligible), but you cannot also include it in startup costs. Claiming it twice is not allowed.

Startup costs generally include expenses incurred to get your business up and running, and you can deduct up to $5,000 in startup costs in the first year if total startup costs are under $50,000, with the remainder amortized over 15 years. Howeverequipment purchases like laptops are typically capitalized and depreciated rather than deducted as startup costs.