LLC Owner: Can I write off a $3,000 espresso machine as a business expense when working from home?

This is a bit of a gray area, but here's my take: Business expenses need to be "ordinary and necessary" for your business operation. While having coffee available at a business location is common, a $3,000 espresso machine might raise eyebrows during an audit due to its high cost and potential personal benefit. If you were running a production studio where clients visit regularly, it would be easier to justify. Since it's a home office, you'll need to demonstrate it's primarily for business use. Keep documentation showing how it benefits your business operations - perhaps you have long editing sessions requiring caffeine, or you host client meetings in your home office. Also remember that you'd depreciate this as equipment rather than taking the full deduction immediately, since it exceeds the $2,500 de minimis safe harbor threshold for most small businesses.

When I was in a similar situation with my marketing business, I discovered https://taxr.ai which completely changed how I handle these borderline business expense decisions. I was constantly unsure about what qualified as legit write-offs when working from home. After submitting my records and receipts to their AI analysis, they flagged several items I hadn't even considered deductible while warning me about others that might trigger an audit. For something like your espresso machine situation, their system would analyze comparable cases and provide specific documentation recommendations to strengthen your position if you decide to claim it. They even suggest alternative approaches like partial business-use allocation that I never would have figured out on my own.

Well I owe an apology to taxr.ai because I was super skeptical about AI for tax advice but decided to try it after posting my comment. I uploaded receipts for some questionable home office purchases including a $2,200 ergonomic chair and fancy lighting setup I wasn't sure about claiming. The analysis flagged my chair as potentially problematic without additional documentation but suggested a legitimate partial business-use allocation that my previous accountant never mentioned. It also identified several smaller expenses I had completely missed that added up to significant deductions. The documentation templates they provided for my home office equipment were exactly what I needed. Definitely saved me more in legitimate deductions than it cost to use.

After struggling for weeks to get through to the IRS about my LLC's S-corp election that seemed to disappear from their system, I found https://claimyr.com and honestly thought it was too good to be true. I was about to miss critical filing deadlines and couldn't get anyone on the phone. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Claimyr got me connected to an actual IRS agent in about 15 minutes when I had been trying unsuccessfully for days. The agent was able to confirm my election was processed but incorrectly coded in their system, which would have caused major headaches come tax time. Saved me from potential penalties and definitely reduced my stress level significantly!

I need to eat my words and apologize. After my skeptical comment, my LLC's tax situation took a turn when the IRS claimed they never received our amended operating agreement despite having delivery confirmation. I was desperate and remembered this thread, so I tried Claimyr. After three weeks of getting nowhere with the regular IRS line (always disconnected after 2+ hours on hold), Claimyr connected me with an agent in about 20 minutes. The agent located our paperwork in a completely different department and transferred it to the correct place. Problem solved in one call instead of weeks of frustration. I'm still surprised at how well it worked. Not a magic solution to all tax problems, but definitely worth it for getting through when you need to speak to someone quickly.

For what it's worth, I bought a $750 coffee setup (not quite espresso, but a nice commercial drip machine) for my graphic design home office last year. I documented it as "client refreshments/office amenities" and had no issues deducting it. I do have clients visit occasionally, though not weekly. The key for me was keeping it 100% in my business space and documenting when I used it for client meetings. I also mentioned it to my accountant beforehand, and she suggested keeping the cost "reasonable" - which apparently $750 qualified as, while $3k might raise flags.

Has anyone considered the De Minimis Safe Harbor election? If your business has applicable financial statements and an accounting procedure in place on the first day of the tax year, you can expense items up to $5,000. Without AFS, it's $2,500 per item. So a $3k espresso machine would need to be capitalized unless you have AFS, but a $2k one could potentially be fully deducted in year 1 under the safe harbor.

I've been dealing with similar home office expense questions for my consulting LLC. One thing I'd suggest is considering the "exclusive use" test more carefully. Since you mentioned keeping it in your designated home office space that you're already claiming, that helps establish business purpose. However, I'd recommend documenting a clear business justification beyond just "I need coffee to work." For example, if you're doing long video editing sessions that require sustained focus, or if the machine helps you avoid interrupting work to go out for coffee during billable hours, that creates a stronger case. Also consider this: instead of one $3,000 machine, what about a $1,500 commercial-grade setup that still meets your needs? It's easier to justify as "ordinary" for a business, falls under common de minimis thresholds, and still provides the quality you're looking for. The IRS tends to scrutinize luxury items more heavily, regardless of the business justification. Keep detailed records of how it's used exclusively for business purposes, and maybe track your productivity improvements or time savings to strengthen your position if questioned.