Recent events have made it so that I've been earning large amounts of income from side work which would be miscellaneous income. This leads me to look at the expenses this side income is incurring (or could be incurring).
My rather basic understanding is that expenses incurred in the production of that miscellaneous income are deductible.
Dual use items are also deductible to the extent and only to the extent that they are used for business.
The specific question I have is about how that calculation should work. For daily life, a low spec laptop has been perfectly adequate. For the side job, a high spec laptop would speed it up significantly and make it less of a burden.
Is the distribution based on time of use for each application or can it include factoring in the intensity of use? Is there any standard formula?
As an example, if a consumer laptop of about 100k yen is sufficient for me but a 400k yen laptop would speed up the side work, could I book an expense of 300,000 (depreciating over the standard 4 years) for the portion of laptop's capabilities that is for the business?
by univworker
1 comment
I think I know what you’re asking, and the answer is a % of time used. It doesn’t matter if you could get by with a 100K laptop, but needed the 400K. Either you bought one for 100K or 400K. Then what % of it’s use (time spent using) is business? There is no right answer to this as it’s nearly impractical to measure accurately. So a rough guess is fine. And if it’s 100% use I guess you better have a second one you can use for personal reasons to show because that’s the only way I think it’d be a slight flag.
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