From: utzoo!decvax!harpo!ihnp4!ihuxx!ignatz Newsgroups: net.taxes Title: Deduction questions... Article-I.D.: ihuxx.314 Posted: Mon Jan 17 15:41:53 1983 Received: Wed Jan 19 19:16:21 1983 Reply-To: ignatz@ihuxx.UUCP (Dave Ihnat, Chicago, IL) Two questions: 1) I recently purchased a micro-computer system with some peripherals and software. As I'm a consultant in the field, I'm sure I can write off the purchase price (a modest $3000.00) The only problem is that I've been told of three ways to do it; and friends of mine who are tax lawyers can't agree on which is best! I'd like to know of anyone who's *used* one of these methods, or *knows* that one is best for my purposes (i.e., greatest deduction in the shortest amount of time) I. Educational expense. (A co-worker at my branch of the consulting firm used this, but it was 3 years ago; have the laws changed?) Basically, there is a clause which allows you to deduct *all* expenses related to education necessary to allow you to retain your job (NOT train for a new or better job.) Also, apparently this may be applied as a lump sum deduction to you gross income. Thus, the rationale my friend applied was that it was necessary for him to have a system to train and experiment on. The IRS hasn't audited him yet. (Comment: was all of this information from him correct? Or is he just lucky so far?) II. Capital expenditure, amortized over a period of time. Depending upon which lawyer I talked to, it was over 3 or 5 years. In any case, the amount isn't worth it. III. Capital expenditure under $5,000. This one the lawyer was woozy on, both because it's supposedly new, and also because of the 4th or 5th Jack Daniel's we'd put away; but he stated that for small capital expenditures under $5000, or was it $6000 or $10000...anyway...you could write it all off on the first year. Hmmm? Any veracity to this? Thanks for any legit responses...if they check out, I'll let you all know in Dave Ihnat ihuxx!ignatz