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Visitor II

How to deduct/depreciate/take Sec. 179 deduction a computer being paid off over time?

I bought a laptop in 2016 and neglected to take any deductions for it. It was gradually paid off with monthly payments that began in 2016 and ended part-way through 2017. How should I claim a deduction for it?

3 Comments
TurboTax Specialist

How to deduct/depreciate/take Sec. 179 deduction a computer being paid off over time?

To claim a deduction for the 2016 laptop used in business, you can amend the tax return for that year. A new laptop would qualify for a 179 deduction and/special depreciation allowance making it possible for you to recover the entire cost in that year (if you had a profit)

 

Or you can claim depreciation of 5 years or some combo of depreciation and the the 179/special depreciation allowance.

Visitor II

How to deduct/depreciate/take Sec. 179 deduction a computer being paid off over time?

Those would make sense if I had fully paid for the laptop in 2016. But, as I noted, I paid for it over time, beginning with some payments in 2016 and ending with some in 2017.  So how to deal with this situation?

TurboTax Specialist

How to deduct/depreciate/take Sec. 179 deduction a computer being paid off over time?

It doesn't matter how you paid for the laptop its cost recovery is the same-5yrs or some combo as outlined above.  The deduction begins in 2016 when the laptop was placed in service.