A laptop used 70 percent for work belongs on Line 13, depreciation and section 179 expense deduction.
Why line 13
Apply the business-use percentage to the cost first, then run that reduced amount through the depreciation rules on Form 4562, with the result landing on line 13. A $2,000 laptop at 70 percent business use gives $1,400 of depreciable basis, and a section 179 or bonus election can usually write that off in the year you placed it in service. Computers are no longer listed property, so there is no statutory log, but 70 percent is a number you have to be able to explain. The practical standard is a usage record over a representative stretch, a few weeks of noting what the machine was used for, kept with a short memo setting out the conclusion.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a laptop used 70 percent for work lands on Line 13 without you sorting it.
Start for freeWhat a laptop used 70 percent for work is confused with
- Line 18, office expense
- If the machine cost no more than the de minimis safe harbor limit and you have the written policy and election in place, the business share can be expensed on line 18 instead of going through line 13.
- Line 22, supplies
- Accessories consumed in use, cables, a replacement charger, a mouse, are supplies on line 22 at the business percentage and do not join the laptop's basis.
- not deductible, not deductible
- The personal 30 percent is not deductible anywhere, and a later drop in business use below the level you claimed can force part of a section 179 deduction back into income.
Examples that belong on line 13
- $2,000 laptop at 70% business use: $1,400 of basis on Form 4562
- The same laptop at 45% business use: section 179 is unavailable and straight line depreciation applies
- $2,300 laptop expensed under the safe harbor at 70%: $1,610 on line 18
- $180 docking station at 70%: $126 of supplies on line 22
- A second laptop kept at the office and never taken home: 100% business use
What does not belong here
- Deducting the full price because the business card paid for it.
- Section 179 on a machine with 50 percent or less business use.
- A percentage with no usage record or memo behind it.
- Ignoring a later fall in business use, which can trigger a recapture of part of the deduction.
The limit that applies
Business-use percentage limits the basis. Section 179 requires business use of more than 50 percent in the year the asset is placed in service, and a later fall in business use can cause part of the deduction to be recaptured as income.
What to keep
Keep the purchase invoice, a usage record covering a representative period, and a signed memo stating the percentage and the basis for it. Note the date the machine was first used in the business, because that date, not the purchase date, starts depreciation.
Other expenses on line 13
| Expense | Line |
|---|---|
| a business sign | Schedule C, Line 13 |
| a camera and lenses | Schedule C, Line 13 |
| a desk and office chair | Schedule C, Line 13 |
| a laptop or computer | Schedule C, Line 13 |
| a phone handset | Schedule C, Line 13 |
| a trailer | Schedule C, Line 13 |
| capital expenditures | Schedule C, Line 13 |
| commercial kitchen equipment | Schedule C, Line 13 |
| software bought outright | Schedule C, Line 13 |
| tools over a few hundred dollars | Schedule C, Line 13 |
Related lookups
- Where does printer ink go on Schedule C?
- Where do job materials go on Schedule C?
- Is a car payment deductible on Schedule C?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a laptop used 70 percent for work lands on Line 13 without you sorting it.
Start for free