Personal to business tax treatmentQuestion For tax purposes, how do I treat assets, such as a laptop, that have been converted from personal use to business use?
Answer You can depreciate these items based on the lower of their adjusted basis (usually what you paid for it) or its fair market value (what you could sell it for), on the date you converted the items from personal to business use.
However, you cannot use Section 179 first-year direct expensing, because the original use of these items was personal, not business. 
Brain Trust contributor:
Author of J.K. Lasser's Small Business Taxes 2007
Related Categories: Accounting, Finance, Taxes
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