I received my first question! YAY!

I received my first question and compliment on my Arika Answers Post!

Before I answer I would like to thank the anonymous comment poster: Thank you for your question and especially the compliment.


Question: If you buy equipment such as a new computer (the old one wasn't fast enough) and fax machine for the sole purpose of being able to telecommute and/or keep your telecommuting position are those tax deductible? I don't plan on deducting my office on my taxes because it isn't used solely for business, so I'm wondering if I will be able to deduct the other items. Thanks, and keep up the good work!

Answer:

If you purchase the equipment and use it only for the purpose of your work as a telecommuter then yes, you can deduct 100% of the cost on your taxes.

If a percentage of its use is for personal purposes then only the percentage that is used for your telecommuting position/business is deductible as a business expense.

You would deduct these costs on Schedule C. Check with the IRS because you may have to depreciate some of the items, which means that you would take a certain amount of the total cost as a deduction over more than one year until the total cost is recouped.