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