Ask an AI Accountant

Absolutely! If you bought a new laptop for your startup business, you can definitely include it as a startup cost. However, because a laptop has a useful life of more than a year, you generally can't deduct the full cost all at once. Instead, you'll need to depreciate it, which means spreading the cost over the useful life of the laptop.

Here's how it works: You'll deduct a portion of the laptop's cost each year over its expected lifespan, which is typically five years for a laptop according to IRS guidelines. This way, you're matching the cost of the laptop to the income it helps you generate over time.

Remember, to qualify as a startup cost, the laptop must be bought and used for business purposes before your business officially opens. If you buy and use it after your business starts, it's not a startup cost but can still be depreciated as a business expense.