Yes, A Laptop Counts As A Deductible Business Expense
If you bought a laptop to do the work that generates your freelance income, the IRS treats it as a legitimate business expense. It does not matter whether you are a designer running Figma, a developer compiling code, or a writer living in Google Docs. The test is simple: did you buy it, at least in part, to run your business?
Where it gets messier is figuring out how much of the cost you can deduct and when.
How Much You Can Deduct, And When
A laptop is technically a piece of equipment, which means the IRS normally wants you to depreciate it over several years instead of deducting the full price in year one. In practice, almost nobody does this for a single laptop, because two easier options exist:
- De minimis safe harbor election: If the laptop costs $2,500 or less, you can elect to deduct the entire cost in the year you bought it, no depreciation schedule required. This covers the vast majority of laptops freelancers buy.
- Section 179 deduction: For pricier equipment (or if you want to formally elect it), Section 179 lets you deduct the full purchase price of qualifying equipment in the year you place it in service, up to an annual limit set by the IRS. This also works for a $3,000 or $4,000 machine.
Either way, the practical result is usually the same: you buy the laptop, you deduct the cost that year, no multi-year depreciation spreadsheet needed.
Business Use Percentage Matters
Here is the part freelancers skip and then regret. If you use the laptop only for client work, you deduct 100% of the cost. If you also use it to watch Netflix, manage personal email, and browse Instagram, you can only deduct the percentage of use that is actually business related.
There is no official IRS form that tells you the exact percentage. You are expected to make a reasonable, honest estimate and be able to explain it if asked. Common approaches:
- If it is genuinely your only computer and you use it constantly for work, many freelancers reasonably claim 80 to 100% business use.
- If you have a separate personal computer and the laptop is dedicated to client work, 100% is easier to defend.
- If it is shared heavily with personal use, estimate honestly (50%, 60%, whatever reflects reality) rather than guessing 100% by default.
Where It Goes On Your Tax Return
Report the deduction on Schedule C, in the "Other Expenses" or the depreciation/Section 179 section depending on how you elect to expense it. Keep the receipt or invoice showing the purchase price and date, since that is your proof if the deduction is ever questioned.
Accessories bought alongside the laptop, like a monitor, external hard drive, laptop stand, or carrying case, are deductible the same way, subject to the same business-use rule. A single high-cost setup (laptop plus monitor plus dock) can sometimes push you over the $2,500 de minimis threshold, in which case Section 179 becomes the more relevant option.