Can I deduct my laptop for 1099 business if it's also used for personal purposes?

Yes, you can deduct the laptop and monitor for your 1099 business, but only the portion used for business purposes. This is called a "business use percentage" deduction. Keep track of how much you use the equipment for your business versus personal use. If you use the laptop 60% for business and 40% for personal, you can deduct 60% of the cost. You'll report this on Schedule C when you file your taxes. For items costing more than $2,500, you have two options: deduct the business portion all at once using Section 179 deduction, or depreciate it over several years. For a laptop, the depreciation period is 5 years. Make sure to document your business use percentage. While you don't need to submit this documentation with your return, you should keep records in case of an audit. A simple log or calendar showing business versus personal use is usually sufficient.

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Another thing to consider - if your laptop costs more than $2,500, you might want to look into bonus depreciation instead of Section 179. The rules keep changing but for 2025 filing I think you can still take 80% bonus depreciation which is pretty sweet for big purchases.

I'm confused about something - do I need to set up a separate user account on my laptop for business vs personal use to prove the percentage? Or is that overkill?

One thing I haven't seen mentioned yet is that you should also keep receipts and documentation for the actual purchase of your laptop and monitor. The IRS will want to see proof of the cost basis for your deduction calculations. Also, since you're transitioning from using a work laptop to purchasing your own, make sure you can clearly show when you started using your personal equipment for business purposes. This becomes important for the depreciation timeline if you go that route instead of Section 179. I'd recommend taking photos of your setup and keeping a simple log of when you first started using it for your 1099 work. Having that paper trail makes everything much smoother if you ever get audited.