2016-12-12 00:00:00TaxesEnglishLearn the basic rules to distinguish between deducting or capitalizing the purchase of a new small tablet.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Small-Business-Owner-Considers-Whether-She-Should-Deduct-Her-Tablet-As-A-Current-Expense-Or-As-An-Annual-Deduction.jpgAccounting Tips: Consider Deducting Your New Tablet as a Small Business Expense

Accounting Tips: Consider Deducting Your New Tablet as a Small Business Expense

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Should you deduct the purchase of a new tablet as a current expense or capitalize the cost and deduct a portion annually? The answer depends on a number of factors.

While there is no hard and fast rule in the tax laws, generally items that are bought with a view of using them for several years are capitalized. Traditionally that has been the case with electronic equipment. However, considering the speed at which tablet technology evolves, it may not be unreasonable to consider tablets, especially small and relatively inexpensive ones, as current expenses.

The final determination will depend largely on the nature of your business and the usage you make of the tablet. If, in fact, you change often, then deducting it as a current expense makes sense.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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