If I buy a computer monitor and use it _exclusively_ for business purposes (website design, etc) during the tax year in which it is purchased, can I use it for personal use after the tax year is over? How late in the year could I purchase it to qualify?

Zip Code: 23226

What happens when you claim a business deduction for a piece of equipment, and then, subsequently, take that equipment out of business use?

In theory, you need to "recapture" a portion of the tax break that you claimed if you elected to write-off the full cost of the item you purchased. With computer equipment, you're supposed to pay taxes on 20% per year of the original cost of an item if you don't keep it in business use for 5 years.

So if you claim the full deduction this year, and then switch it to personal use the next year, you're supposed to report 80% of the deduction you claimed as income on that year's tax return. Wait until year three to take the equipment out of business use, and the percentage falls to 40%.

As far as the purchase date, as long as you pay for the item (or charge it on your credit card), and have it up and running, by December 31st, you'll be able to write-off it's full cost as a Section 179 deduction this year.

Zip Code: 01801