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    6 Replies Latest reply on Aug 5, 2009 8:09 AM by quickbooksgal

    LapTop deduction question

    LarryLee Newbie
      I have a 9-5 job, and last year started a small business (sole proprietary) to design websites, I spent $650 to purchase a new laptop and registered websites, set up advertisment on FaceBook, etc. As a result I spent close to $1000 in 2008, but unfortunately did not make a dime (I believe this will take me some time to get any real clients).

      Can I claim these expenses against my normal W2? Should I claim the full cost of the main spending(Laptop) or depreciate it?

      Thanks so much
        • Re: LapTop deduction question
          DomainDiva Ranger
          Talk toyour accountant, there is another IRS schedule you must file with the 1040.
          • Re: LapTop deduction question
            LUCKIEST Guide
            LapTop deduction question, Welcome

            Who are you?? Many questions need to be answered.

            First: If you are a sole prop, DO YOU have a Federal I D Number??

            No you can NOT claim these expenses against W 2 Income.

            Talk to an accountant, LUCKIEST
            • Re: LapTop deduction question
              hconnections Adventurer
              Hello LarryLee,

              Congratulations on starting a new business. More people need to do that, especially people who are still working under a W2. Unfortunately not enough people know that the tax system was created for two types of people, the uninformed (W2 employees) and business owners. Business owners are allowed to deduct many business related expenses as long as it was ordinary and necessary in pursuit of you trying to get a profit. Even if you didn't make a profit, the expense is still tax deductible. Your laptop purchase can be written off either as a whole deduction under 'equipment' or you can write off a portion each year under 'depreciation'. Your business deductions will also help offset your W2 income. The form that will need to be used along with your 1040 is Schedule C.

              Please let me know if I can be of any further assistance. I am a tax professional of 20 years and specialize in small business owners. I have help hundreds of people pay less taxes each year, and/or maximize their refunds.

              You will also find a wealth of tax and business resources on my website at Just click on Resource Center. I'm currently reconstructing my website so pardon anything that may seem out of order.

              Ktasha, your personal tax partner
              Make more money now. Visit
              I'm mobile (914) 562-8301
              • Re: LapTop deduction question
                bm911tax Adventurer

                Yes you can claim these expenses as a deduction. You claim them on Schedule C and it will be deducted from your overall income. But you need to be aware that if you stop and discontinue your business venture or will not continue building it to grow, the IRS might view these expenses as hobby expense and in that case you will be unable to deduct those expenses.


                Best of luck



                • Re: LapTop deduction question
                  quickbooksgal Wayfarer
                  Hi Larry,
                  If you did not fomally start a legal business and are acting as a sole proprietor, you can file a Schedule C with your 1040, and use a Section 179 Deduction for the assets. I would higly recommend using TurboTax by Intuit to do it yourself. Also, we offer a free version of QuickBooks that I would recommend you use to at least keep your expenses and income in order. If you need further assistance, please let us know.
                  Good Luck!