How to Tax Deduct a Home Computer

Every year, people sit down and try to determine just how much they can claim to get a chunk of change back from the government. Many times, there are hidden items that can be deducted--including your home computer.

Instructions

1. Make sure you and the IRS agree on the term "home office" and use it for those purposes. It's possible that if you're audited, the IRS might think your home computer isn't being used mostly, or solely, for personal gain. Double check how often your computer is being used for work purposes before you deduct it, and only deduct the percentage you use it.

2. Purchase a few office software programs. If used for business purposes, these items are a tax deduction. So, while you may not be able to deduct your whole computer if it's not used for business purposes, you can deduct the software you put on it.

3. Deduct your printer and fax machine, too. If you use either of these for any of your business purposes, you can deduct these expenses. Remember--that includes the supplies to keep it up and running like ink and paper.

4. Put your computer in a separate room, whether you designate it the computer room or the office. Either way, the IRS sees it as less of a chance for you and your young ones to use it for mostly personal use. Also, by placing it in a room, there are times when you can deduct the other items in the room as well if it is deemed an "office."

5. Step back into the "Stone Age" by using a phone line to connect your computer or fax machine. Even though it may be slower, you can deduct these additions to your computer or office if you use them for business purposes.