Can I deduct my computer as a business expense?

I am a financial planner. The computer was not required by my employer, but I can do my job much better with it.

Can I deduct my computer as a business expense?
Yes but you may have to amortize it. Do your taxes with the deduction and without - if it doesn't make much difference then file without - probably not worth the hassle if the IRS audits you.
Reply:If you are self-employed and file a Schedule C, you would capitalize it and depreciate it. If your business had net income then you can elect Sec. 179 and expense the entire amount in 2006.





If you are an employee, you can deduct this as an "unreimbursed employee expense" on Form 2106 or Schedule A. However, it will be subject to 2% of your AGI, and unless you itemize deductions, will not be deductible.
Reply:If you're a financial planner, your computer, internet access, printer can all be a business expense IF you are an independent contractor.





If you work for a firm and they don't provide it, then you can deduct it over the 2% floor for additional deductions, but it is really a red flag for audit. Honestly, to expect a CFP to do their work without a computer is pretty justifiable, but the audit programs at the IRS don't know that.