I purchased a new desktop computer system for my small business, and since the computer is in my home (I don't have a separate office, and while I do have a room in my home devoted entirely to office/business use, I haven't been taking the home office deduction), I believe it qualifies as "Listed Property." I use the computer almost exclusively for business, but I do use it to watch the occasional movie (because the screen is much bigger than the one on my new laptop that I bought mainly for personal use and that I'm not deducting) and read/respond to occasional personal emails that come in while I'm working. I know that means I'm supposed to keep written records of my business vs personal computer usage, and I assume it's those written records that Form 4562 Part V Line 24a "Do you have evidence to support the business/investment use claimed?" and Line 24b "If 'Yes,' is the evidence written?" refers to?

What happens if I answer question 24a with "No"? Will my deduction not be allowed? If I answer "Yes," will I be expected to enclose written evidence with my tax return? If not, will the IRS contact me later to request my written computer usage records? About 90% of the time I use the computer for business, but I learned only recently that I was supposed to keep a written record of when that is, so I would have to go back and construct such a record from memory and document/email dates as best as I can. That would be a lot of work, not to mention enormously time-consuming.

I'd also like to hear from other sole proprietors who took a Section 179 deduction for a computer that qualified as Listed Property. Did you have written usage records if you did not use the computer entirely for business? Did the IRS ask to examine them? How detailed were they?

Any help would be much appreciated.

I purchased a new desktop computer system for my small business, and since the computer is in my home (I don't have a separate office, and while I do have a room in my home devoted entirely to office/business use, I haven't been taking the home office deduction), I believe it qualifies as "Listed Property." =====I guess it depends; as you can see, listed pty means; property that is used by employees or owners in a business which can also be used for personal purposes


I use the computer almost exclusively for business, but I do use it to watch the occasional movie (because the screen is much bigger than the one on my new laptop that I bought mainly for personal use and that I'm not deducting) and read/respond to occasional personal emails that come in while I'm working. I know that means I'm supposed to keep written records of my business vs personal computer usage, and I assume it's those written records that Form 4562 Part V Line 24a "Do you have evidence to support the business/investment use claimed?" ======>>yes thus is one of the examples of LISTED PTY;you need to check yes box.

and Line 24b "If 'Yes,' is the evidence written?" refers to?=====>>any document log or excel sheet used by you to report your listed pty or etc

What happens if I answer question 24a with "No"? Will my deduction not be allowed?=====>I guess so unless you have some reasonable cause to convine IRS on the reason why you do not have any evidence to support your listed pty. For this you need to contact the IRS it is beyond tax pro?s capability

If I answer "Yes," will I be expected to enclose written evidence with my tax return?=====>I donnot think so however you need to keep any written evidence to submit at any time if you are required to submit them.

If not, will the IRS contact me later to request my written computer usage records?==> Aslongas your return gets audited by the IRS then yes.


About 90% of the time I use the computer for business, but I learned only recently that I was supposed to keep a written record of when that is, so I would have to go back and construct such a record from memory and document/email dates as best as I can. That would be a lot of work, not to mention enormously time-consuming.=> it?d be excellent preparation for a possible IRS audit.

I'd also like to hear from other sole proprietors who took a Section 179 deduction for a computer that qualified as Listed Property. Did you have written usage records if you did not use the computer entirely for business? ======>Your business usage of listed property be more than 50% in order for you to claim an expensing election for the property; to claim "bonus" depreciation for the property, or to depreciate the property under the MACRS depreciation system. If you use the property less than 50 % for business, you can still claim depreciation based on your business use percentage, but you must use straight-line depreciation under the ADS method, using the appropriate ADS class lives for the items.


Did the IRS ask to examine them? How detailed were they?==========>>not that I know of however you just need plain record, doc , excel sheet or log or etc