Hey all, my wife started streamjng on Twitch this year and made almost $10k. She purchased a new high quality built computer off of a facebook marketplace seller, it was almost $2k. Is there anyway to write this off if there is no real receipt just phone conversation? Thank you
Posted by Even_Ad3204
3 Comments
Yes, maybe. Your archived conversation becomes your receipt, together with your payment transfers.
But is this computer used 100% for business purposes? Is it ever used personally?
Are you filing a Schedule C?
The technical answer is that it is only deductible to the amount it is used for business. In practice, if you have a fair bit of taxable income most tax preparers just deduct.
Ex you make 10k in income and your only expense is this 2k. That isn’t heavily scrutinized.
Ex you make 10k, and deduct 7k of expenses and this 2k laptop. Now expect scrutiny.
If the computer is used exclusively for her streaming, then you can deduct the purchase price. You don’t submit receipts with your tax return. In the (unlikely) event of an audit, you would need somehow to prove what you paid, which would be whatever you have: a check, a bank statement, a note from the seller, etc.
If the computer is not used exclusively for streaming (does she sometimes check her personal email?), then you should only deduct the percentage of the computer that she uses for business.