New Here? Get the Free Newsletter

Oblivious Investor offers a free newsletter providing tips on low-maintenance investing, tax planning, and retirement planning. Join over 17,000 email subscribers:

Articles are published Monday and Friday. You can unsubscribe at any time.

Deducting a Blackberry, iPhone, or Laptop

Gosia (independent contractor) asks:

I work in a sales position where I am classified as an independent contractor, so I file a Schedule C every year. So far this year I’ve purchased a Blackberry and a laptop for use in my business. Will I be able to deduct these? I’m concerned because I obviously don’t use them ONLY for business.


Generally, if you use it more than 50% for business purposes (as opposed to personal use), you will be able to deduct the cost of the item multiplied by the percentage of business use. For example, if you use it 60% for business, you can deduct 60% of the cost.  This is known as electing to take the Section 179 expense deduction, and you will have to file a form 4562.

If the property is used less than 50% for business purposes, you will be able to deduct the portion of the cost allocable to business use over a specified number of years.  (See Instructions to Form 4562 for more information).

For More Information, See My Related Book:

Independent Contractor, Sole Proprietor, and LLC Taxes Explained in 100 Pages or Less

Topics Covered in the Book:
  • Estimated tax payments: When and how to pay them, as well as an easy way to calculate each payment,
  • Self-employment tax: What it is, why it exists, and how to calculate it,
  • Business retirement plans: What the different types are, and which one is best for you,
  • Click here to see the full list.
A testimonial from a reader on Amazon:
"Quick and easy read. No fluff, just straight to the point and gives you more helpful information that you might imagine. If you are looking to get the bottom line information you need to start your business right then this book is a must have."
Disclaimer: By using this site, you explicitly agree to its Terms of Use and agree not to hold Simple Subjects, LLC or any of its members liable in any way for damages arising from decisions you make based on the information made available on this site. I am not a financial or investment advisor, and the information on this site is for informational and entertainment purposes only and does not constitute financial advice.

Copyright 2017 Simple Subjects, LLC - All rights reserved. To be clear: This means that, aside from small quotations, the material on this site may not be republished elsewhere without my express permission. Terms of Use and Privacy Policy