Question

Schedule C - Business Expenses - Computer Equipment

Forum|Forum|5 years ago
March 27, 2021
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I have $5200+ of Computer equipment expenses ranging from a computer parts build and subsequent parts upgrades and Monitor and a iPAD and much more....all on 30 receipts (various dates thru year). No single item approaches $2500 cutoff so I will depreciate all in one year as expense.

QUESTIONS: Should I list this total expense as 1 line item under Other Miscellaneous Expenses or subcategorize them under same? Will the IRS likely think I am exceeding the 1 item > $2500 rule?

Any suggestions appreciated...

ColeenD3

These are many component of one item, a computer. You need to include it as all one item. Include this in the depreciation section. You are still able to deduct the entire amount the first year, by using a Section 179 deduction.