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How can I determine the percentage of use for a business asset that I use personally? |
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Self-employed individuals who purchase an asset for use in their business may also be using it for personal use, which would reduce their ability to deduct or expense the asset as 100% business. When this happens, the expenses associated with the asset have to be limited by the percentage of personal use (i.e. cost and depreciation). This calculation can often be difficult to determine, but you should use the amount of time the asset is used in business as opposed to personal use. For example, the business usage of a cell phone can be determined by tracking the average percentage of business calls versus personal calls. |
