Can I Deduct My iPad?

Feb 22 2014, 12:12pm CST | by

Can I Deduct My iPad?
Photo Credit: Forbes Apple

As the tax season gets started, I’m seeing many clients that want to deduct their iPads. But are there any issues?

Now it’s true that an iPad is tremendously valuable for helping operate a business. Hey, you can track your accounting with Xero or Intuit’s QuickBooks. Or you can manage your CRM with Salesforce and keep up with your contacts on LinkedIn.

The uses are seemingly endless.

But of course, an iPad can offer lots of fun too, such as with games, movies or music. And this is where the IRS gets suspicious.

In fact, the agency considers the iPad to be listed property. This means it often has both a business and personal use.

The bottom line:  If you want to deduct the iPad, you must use it for your business for over 50% of the time.   Oh, and as for the deduction, you can only include this percentage. Example: You purchase the device for $499 and use it 80% for business. In this case, your allowable deduction is $399.

Now be careful. If you deduct 100%, this will probably be a red flag for the IRS. The fact is that you probably still use the device for personal purposes (yes, many business owners love to play “Candy Crush Saga”!)

What’s more, you can either deduct the amount in the current year (according to the rules of Section 179) or you can depreciate the value of the device over a period of time (five years). Of course, it all depends on your current tax situation, taking into account your expected losses or profits.

To get more details on depreciation — and the Section 179 deduction — you can also check out one of my recent posts on the topic.

Tom Taulli (@ttaulli) operates MasterCFO, which helps founders with accounting and taxes.  He is also the author of “How to Create the Next Facebook,” which is a step-by-step guide for creating a breakout startup.

Source: Forbes Apple

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Indian-born scientist wins prestigious US award
Washington, Sep 3 (IANS) India-born scientist Dr Thomas John Colacot has won the American Chemical Society's ACS Award in Industrial Chemistry, one of the top honours in the field.
 
 
Cannabis could be as addictive as drugs
New York, Sep 2 (IANS) As more people are able to obtain and consume cannabis legally for medical and, in some states in the US, recreational use, people are less likely to perceive it as addictive or harmful. But a research study proves otherwise.
 
 
New sensor to detect tiny, individual nano-particles
Washington, Sep 2 (IANS) In a major breakthrough, a team of researchers has developed a new sensor that can detect and count nano-particles, at sizes as small as ten nano-metres, one at a time.
 
 
Experiential purchases more satisfying than material ones
New York, Sep 2 (IANS) Spending money doing things or buying experiences makes people feel a lot more happier than spending money on material things, a study says.
 
 
 

Latest from the Network

Indian-born scientist wins prestigious US award
Washington, Sep 3 (IANS) India-born scientist Dr Thomas John Colacot has won the American Chemical Society's ACS Award in Industrial Chemistry, one of the top honours in the field. Colacot, who studied at St Berchman'...
Read more on Apple Balla
 
Beheading of second journalist shocks US; White House in crisis mode
Washington, Sep 3 (IANS) As the beheading of a second American journalist by the Islamic State (IS) terror group sent shock waves through the nation, US President Barack Obama authorised 350 additional troops be...
Read more on Ad Balla
 
Suge Knight knows who shot him
Suge Knight says he knows who shot him at Chris Brown's party last month. The 49-year-old music producer, who was shot six times at the 'Loyal' hitmaker's pre-bash for the MTV Video Music Awards (VMAs) at 1Oak nightclub...
Read more on Celebrity Balla
 
Claire Danes says motherhood is challenging
Claire Danes admits she sometimes resents being a mother. The 'Homeland' actress, who has a 21-month-old son, Cyrus, with husband Hugh Dancy, also says marriage is hard, but insists she is besotted with both of the men...
Read more on Celebrity Balla
 
China's yuan weakens
Beijing, Sep 3 (IANS) The value of the Chinese currency renminbi, or the yuan, retreated 13 basis points to 6.1697 against the US dollar in its central parity Wednesday, authorities said. In China's foreign exchange...
Read more on Business Balla
 
Miltos Yerolemou joins 'Star Wars Episode VII' cast
Los Angeles, Sep 3 (IANS) Miltos Yerolemou, who was seen as swordsman Syrio Forel in TV show "Game of Thrones", joins the cast of "Star Wars Episode VII". Harrison Ford, Carrie Fisher and Mark Hamill return as Han...
Read more on Celebrity Balla
 
No link between Ebola outbreaks in West Africa, DRC : WHO
Geneva, Sep 3 (IANS) The World Health Organisation Tuesday said the outbreak in Democratic Republic of Congo (DRC) is "a distinct and independent event", with no relationship to the epidemic in West Africa. Based on...
Read more on Business Balla
 
US warplanes drop leaflets on Iraqi city
Baghdad, Sep 3 (IANS/EFE) US warplanes Tuesday dropped thousands of leaflets on the northern Iraqi city of Mosul, urging residents to keep clear of places occupied by the Islamic State (IS) extremist group that overran...
Read more on Politics Balla
 
US CDC calls for global response against Ebola
Washington, Sep 3 (IANS/EFE) The head of US Centers for Disease Control and Prevention (CDC) Tuesday warned of the risk that the Ebola outbreak could get out of control without a greater worldwide response. "This is...
Read more on Business Balla
 
Don't have a perfect body: Charlize Theron
Los Angeles, Sep 3 (IANS) Actress Charlize Theron says she doesn't have an ideal figure, but is happy with the way her body looks. The actress features on the cover of Modern Luxury's September 2014 issue and looks...
Read more on Celebrity Balla