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Depreciation computer for temporary home office

Initiate

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Hello,

 

I need to buy a computer (>$300) for work purposes because my company does not provide any at the moment. I understand the depreciation will happen over the next 4 years.

 

If my employer decides to equip its employees with computers next year (or if I move to a different employer providing one), will I still be able to continue expensing the depreciation of this computer that I bought when I needed it until the end of its effective life?

 

Ex: Purchase computer for $1,000 on Apr 1st, 2020. On June 30 2020, my company decides to equip us with computers. Will I be able to claim deduction all the same for FY2021, FY2022, etc. until it has been fully depreciated ?

 

Thanks!

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ATO Certified Response

Community Manager

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Hi @rwandrall,

 

You can claim a percentage depending on the work vs personal use of the laptop. If you use it only for work then you can claim 100% of the depreciation cost. If you don't use it for work after your work supplies you one then you will need to calculate the percentage for work or personal use each year going forward. Have a look at our page on home office expenses that talks about the kinds of costs you can claim.

 

Thanks, NateH

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Most helpful response

ATO Certified Response

Community Manager

Replies 1

Hi @rwandrall,

 

You can claim a percentage depending on the work vs personal use of the laptop. If you use it only for work then you can claim 100% of the depreciation cost. If you don't use it for work after your work supplies you one then you will need to calculate the percentage for work or personal use each year going forward. Have a look at our page on home office expenses that talks about the kinds of costs you can claim.

 

Thanks, NateH

Initiate

Replies 0

Thank you for the prompt reply @NateATO !

 

What happens if I am barely using the computer once my company supplies me with one, but don't use it for non-work purpose either? Can I claim 100% of depreciating value because it's 100% work-related (even though not used much, if at all) ?

 

Alternatively, can I keep it for arbitrary work-use (that is, use it when I work from home rather than using the computer my company might provide) and continue to deduct the depreciation loss ?

 

Obviously the ability to claim is important in the decision purchase, hence the various scenarios to make sure the cost doesnt outweigh the gain in productivity.