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Is My Business Laptop a Tax Deduction?

Generally speaking, yes. If your laptop is used for your small business, it is a tax deduction. However, the cost of the laptop will determine whether it can be claimed as a tax deduction immediately, or whether it must be depreciated (claimed over a number of years).

These rules apply not just to laptops, but to most other assets/equipment purchased for your small business.

What are the rules

If you have a small business (small business entity) which is an individual, partnership, trust or company with aggregated turnover of less than $2 million, than you can use the simplified depreciation rules.

This means you can:

  • Write off most depreciating assets costing less than $1000 immediately
  • Pool most other depreciating assets and depreciate these at a rate of 30%
  • Depreciate most newly acquired assets at 15% in the first year, regardless of when they were acquired in that year.

It’s important to bear these rules in mind when making purchases of equipment and other assets for your small business.

This Tax Tips Tuesday is brought to you with love by Nudge Accounting. You can read other Tax Tips here.