Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Path: utzoo!linus!cca!decvax!harpo!floyd!vax135!ariel!houti!hogpc!houxm!ihnp4!stolaf!umn-cs!smith From: smith@umn-cs.UUCP Newsgroups: net.taxes Subject: Re: tax deductions for personal computer - (nf) Message-ID: <269@umn-cs.UUCP> Date: Sun, 5-Jun-83 21:18:07 EDT Article-I.D.: umn-cs.269 Posted: Sun Jun 5 21:18:07 1983 Date-Received: Tue, 7-Jun-83 21:35:16 EDT Lines: 27 #R:pyuxll:-30200:umn-cs:10500002:000:1343 umn-cs!smith Dec 6 16:38:00 1982 I know of and have used two methods for saving on taxes with a personal computer; I've never heard of any other (though I'd love to): 1. Use it to compute your taxes, and deduct "expenses" associated with that use. This is legal and proper, but you can't get much out of this without getting the IRS mad at you. However, I've found that the power of a computer makes tax computation infinitely easier, so I spend time working on strategy instead of on adding columns of numbers. My computer was enough of a laborsaving device at tax time that I credit it with saving me at least its cost in taxes; I would never have DREAMED of tackling Income Averaging without a computer. 2. Deduct it as a business expense. This falls in two categories: A. If you use Schedule C, you just treat it like any other capital expense, and be sure to take your Investment tax credit (yay!). B. If you're an employed professional, consider it "calculating equipment used in your profession" and use Form 2106 to deduct the cost (or the annual depreciation) if you itemize deductions. And don't forget to take the Investment tax credit; it applies to any capital equipment purchased for business purposes. Note that these approaches ONLY apply to computers used for business purposes. Rick.