Today is National Clean out your Computer Day. It falls on the second Monday in February every year.
Originally sponsored by the Institute for Business Technology in the year 2000, it was started to remind you to take a look at your files and programs on your computer and organize and delete old files that could be clogging memory and slowing down your computer.
Sometimes this may not be enough though and it may be time for an upgrade. I know change can be tough but if you're still holding on to Windows XP or have an old Mac that won't play Youtube videos you know you've only been postponing the inevitable. So if you're ready to buy a new computer for your business read on to learn how you write off a new computer purchase:
The IRS allows you to write off business assets but it has to be done over a period of time called depreciation. Even smaller business purchases and things like furniture can't simply be expensed (deducted all at once), they must me depreciated. Different types of assets have different amounts of time that they have to be depreciated. For our example a new computer is considered Five-year property so you can deduct a little bit each year for five years.
There is exception rules to this and often depreciation can be sped up so you can get a larger deduction at once. Depreciation has to be done in a specific way so if you are unsure I recommend contacting a tax pro.
Enjoy cleaning out your computer today or shopping for a new one!
I'm busy working on my blog posts. Watch this space!