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How should I write off my laptop purchase expense?

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Taxing Matters

Overtaxed Member
How would it work if I am employed and receive wages but I also have a second business that I run as a sole proprietorship and whose profits and losses I report on Schedule C? In this case, do my sole proprietorship expenses offset my sole proprietorship income? If the sole proprietorship experiences a net loss, does that offset the wage that is reported on my W-2?
If you are using the laptop primarily for your sole proprietorship then the cost of the laptop may be taken as either a §179 deduction (if you qualify) or depreciated. Note that the § 179 deduction cannot offset wage income. If the laptop is primarily used for personal use or for the job for which you are paid wages then you get no deduction for that at all.

If you have a net operating loss (NOL) from an active trade or business, however, that loss can offset your wage income. As mentioned on the other thread, it must be from an active trade or business in which you materially participate. If it is a passive activity or one in which you do not materially participate then the losses are limited.
 


LdiJ

Senior Member
How would it work if I am employed and receive wages but I also have a second business that I run as a sole proprietorship and whose profits and losses I report on Schedule C? In this case, do my sole proprietorship expenses offset my sole proprietorship income? If the sole proprietorship experiences a net loss, does that offset the wage that is reported on my W-2?
Yes, your sole proprietor expenses still offset your sole proprietor income. Yes, any net loss would still offset your other income. However please do not contemplate shifting what you normally would have included on your Schedule A to your Schedule C. The IRS is going to be looking for that sort of cheating.
 
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