Is computer equipment tax deductible?
Yes — for the business-use percentage. Laptops, desktops, monitors, and peripherals used for business are deductible based on how much you use them for work. Smaller items may use the de minimis safe harbor, while higher-cost equipment may use Section 179, bonus depreciation, or regular depreciation.
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On this page: Short answer · What qualifies · Deduction methods · Business-use percentage · Listed property rule — 2018 change · Schedule C · Example · Records · Related lookups · IRS sources · FAQ
Short answer
Yes. Computer equipment used for business is deductible based on the business-use percentage. Qualifying items up to $2,500 per item or invoice may use the de minimis safe harbor when the annual election requirements are met. Higher-cost equipment may qualify for Section 179, 100% bonus depreciation, or regular depreciation.
Computers have not been listed property since 2018, but Section 179 still has its own rule requiring more than 50% business use.
What computer equipment qualifies
Computer equipment and peripherals that qualify
- Laptops and MacBooks: Any laptop used for business client work, administration, or operations
- Desktop computers: Business workstations, Mac Pro or Mac Studio setups, custom builds
- Monitors: External displays, dual monitor setups, calibrated monitors
- Keyboards and mice: Including ergonomic or specialized input devices used for work
- Docking stations and hubs: USB-C hubs, Thunderbolt docks, port expanders
- Webcams and headsets: Video conferencing hardware, podcast microphones, headphones
- External storage: External hard drives, SSDs, NAS devices for business data
- Tablets used as computers: iPad Pro or Surface Pro used primarily for work
- Printers and scanners: Business printing and document scanning devices
Ways to deduct computer equipment
De minimis safe harbor — qualifying items up to $2,500
- A business without an applicable financial statement can generally use a $2,500 per-item or per-invoice threshold
- The threshold can be $5,000 with an applicable financial statement
- You make the election each year and expense the qualifying amounts in your books and records
- No Form 4562 is needed for the qualifying de minimis items themselves
This can cover many laptops, monitors, docks, drives, keyboards, webcams, and other peripherals.
Section 179 — immediate deduction for qualifying equipment
- Can deduct the business-use cost of qualifying equipment in the year it is placed in service
- Requires Form 4562
- Business use must be more than 50% — this rule still applies even though computers are no longer listed property
- The deduction is subject to Section 179 dollar limits and the business-income limit
100% bonus depreciation — another first-year option
- Eligible computer equipment acquired and placed in service after January 19, 2025 can generally qualify for 100% bonus depreciation
- The deduction applies to the business-use basis of the eligible property
- Report through Form 4562
Regular depreciation — usually 5 years for computers
- Computers and peripheral equipment are generally 5-year property under MACRS
- This can be used when you do not take a full first-year deduction
- Report on Form 4562 → Schedule C, Line 13
FreshBooks — Track computer and equipment purchases as business expenses
Categorize laptops, monitors, and peripherals as business equipment throughout the year so your Schedule C deductions are organized at tax time.
Business-use percentage for computers
If a computer is used for both business and personal purposes, deduct only the business-use portion. Use a percentage that reflects your real use and keep a simple record of how you arrived at it.
Business-use examples
- Dedicated work computer: If it is used only for business, the business-use percentage can be 100%
- Work laptop with regular personal use: Use a reasonable percentage based on your actual work and personal use
- Shared household computer: Keep a simple log or other record showing the business share of total use
There is no standard “safe” percentage such as 80% or 90%. The percentage should match the facts. If business use is 50% or less, Section 179 is not available, but the business-use portion may still be deductible under other rules.
The listed property rule — what changed in 2018
Before 2018, computers were listed property and had extra recordkeeping and depreciation rules. The Tax Cuts and Jobs Act removed computers and peripheral equipment from the listed-property category for property placed in service after 2017.
Computers are no longer listed property, but Section 179 still requires more than 50% business use. That requirement comes from the Section 179 rules themselves, not only from the old listed-property rules.
So a computer used 40% for business is not automatically “not deductible.” You generally cannot use Section 179 on it, but the business-use portion may still qualify for another deduction method.
Where computer equipment goes on Schedule C
| Equipment or deduction | How it is deducted | Where it goes |
|---|---|---|
| Qualifying de minimis item | Immediate expense | Part V, Other Expenses |
| Section 179 | First-year deduction if requirements are met | Form 4562 → Line 13 (Depreciation) |
| Bonus or regular depreciation | Form 4562 | Line 13 (Depreciation) |
Check the final 2026 Schedule C instructions when filing because line numbers can change. The de minimis safe harbor also requires an annual election statement even though the qualifying items themselves are not depreciated on Form 4562.
Example: Freelance developer's computer setup deductions
Example: Freelance developer, 90% business use on the MacBook, monitor, dock, and keyboard
- MacBook Pro ($2,799, 90% business): $2,799 × 90% = $2,519.10 → Section 179, assuming the requirements are met
- External monitor ($649, 90% business): $649 × 90% = $584.10 → De minimis safe harbor
- Docking station ($229, 90% business): $229 × 90% = $206.10 → De minimis safe harbor
- Mechanical keyboard ($189, 90% business): $189 × 90% = $170.10 → De minimis safe harbor
- Webcam ($149, 100% business): $149 → De minimis safe harbor
- External SSD ($109, 100% business): $109 → De minimis safe harbor
- Total business-use deductions in this example: $3,737.40
This example assumes the annual de minimis election applies to the qualifying smaller items and the MacBook meets the requirements for Section 179. Actual tax savings depend on the taxpayer's overall return.
What records to keep
- Receipt or invoice for each item showing the description, purchase date, and cost
- Proof of payment (bank statement, card record, or paid invoice)
- A note describing the business purpose and how the computer or accessory is used for work
- For mixed-use devices: a reasonable business-use percentage and how you calculated it
- For Section 179 or depreciation: the date the equipment was ready and available for business use
- For de minimis items: records showing the item cost and your annual de minimis election statement
TurboTax — Report computer equipment and depreciation
Tax software can guide you through Section 179, depreciation, business-use percentages, and Form 4562 for laptops and other computer equipment.
IRS sources used for this page
These IRS sources cover Section 179, bonus depreciation, the de minimis safe harbor, computer depreciation, and Schedule C reporting.
FAQ
Is a laptop tax deductible for business?
Yes. A laptop used for business is deductible based on the business-use percentage. Qualifying smaller purchases may use the de minimis safe harbor. Higher-cost laptops may qualify for Section 179, 100% bonus depreciation, or regular depreciation.
Can I deduct a computer used for both work and personal use?
Yes, but only the business-use portion. Use a reasonable percentage based on your actual use and keep a simple record showing how you arrived at it. Section 179 requires more than 50% business use.
Are computer accessories tax deductible?
Yes. Monitors, keyboards, mice, docking stations, webcams, headsets, external drives, and other business-use peripherals can be deductible based on the business-use percentage. Qualifying smaller items may use the de minimis safe harbor when the annual election requirements are met.
Is a computer deductible if I work from home?
Yes, for the business-use portion. The computer deduction is based on how the device is used, not on whether you qualify for the home office deduction. You can have deductible business computer equipment without claiming a home office deduction.
What is the listed property rule for computers?
Computers and peripheral equipment have not been listed property since 2018, so the extra listed-property rules generally do not apply to newer computers. However, Section 179 still has its own rule requiring more than 50% business use.
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Last reviewed: August 18, 2026