Laptop depreciation and recapture after 2018
From what I understand, laptops are not considered "listed property" anymore since 2018. If buying a laptop today (over $2500 outside of the de minimis safe harbor rule) that's used 80% time for business (self-employed consulting), I understand that it can be expensed 100% via bonus depreciation. The question is: if anytime in the next 5 years, personal use goes to 100%, does the laptop need to be recaptured? Must very detailed logs of usage and depreciation be kept for the 5 years?
Quick Answer:
Since the laptop is no longer "listed property" under Section 280F, the rules regarding recapture and recordkeeping are significantly more lenient.
**Recapture:**
If business use falls to 0% (100% personal) within the recovery period, you generally do not face the harsh "listed property" recapture rules that would retroactively recalculate depreciation using the straight-line method. However, if you sell the laptop or cease business operations entirely, you may trigger a gain or recapture under Section 1245, as the asset's basis was reduced to zero by the bonus depreciation.
**Recordkeeping:**
Because it is not listed property, you are not legally mandated to keep the "contemporaneous logs" (exact minutes/hours) required for cars or older tech. However, you must still be able to substantiate the **80% business use** percentage if audited.
While you don't need a 5-year minute-by-minute log, you should maintain evidence of the laptop's business purpose (e.g., software logs, calendar entries, or project files) to support your allocation. If use shifts significantly, you should document the new percentage, but you are not required to track it with the same rigor as a vehicle.
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
