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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.