Offer your thoughts or opinion on the input financial query or topic using your financial background.

What are the ins/outs of writing equipment purchases off as business expenses in a home based business?
Most items used in business have to be depreciated; you get to deduct a small fraction of the cost each year depending on the lifetime of the item as per IRS rules. That is, you cannot assume a one-year life for an electronic item  even if it will be obsolete in three months.  Some items can be expensed; you get to deduct the entire cost in the first year but then if you don't stay in business, e.g. you get a job paying wages and are no longer self-employed, you have to recapture this and pay taxes on the amount recaptured in the later year.  With respect to consumer-type electronics such as an iPad or laptop, it helps to have a separate  item for personal use that you can show in case of an audit.