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Tax Breaks

Navigate This

Never be late for a meeting again. Save on taxes, too.

I travel for work and frequently get lost. Can I take a tax deduction for a GPS?

Whether you can deduct a GPS depends on whether you work for yourself or for someone else. If you're an employee, persuading the company to buy the GPS and deduct it as a business expense is your best bet. If your boss doesn't bite and you pay for the GPS yourself, it's a deductible, unreimbursed employee expense.

Alas, such costs count only to the extent that the total of your miscellaneous expenses exceeds 2% of your adjusted gross income, and you get no benefit if you are subject to the alternative minimum tax.

If you're self-employed, you can deduct the business portion of the cost of the GPS in the year you buy the system if you use it for work more than 50% of the time, rather than having to depreciate it over five years. If you also use the GPS for personal travel, calculate the percentage of time you do and subtract that portion of the cost from your write-off. And keep a business-mileage log to support your claim.