an@hou2h.UUCP (A.NGUYEN) (03/08/84)
. Does the cost of personal computer equipment (terminal, printer, modem, etc) go under "Itemized Deductions" (Schedule A) or "Business Expense" (Form 2106) ? Au Nguyen
halle1@houxz.UUCP (J.HALLE) (03/08/84)
A computer goes on Schedule A, not on 2106. Where would you put it on 2106? Unless you're an outside salesman.
2141smh@aluxe.UUCP (henning) (03/12/84)
Where you put PC deductions depends on what legitimate business purpose you have. If you use any forms such as Rents & Royaltys, Employee Business Expenses, Farm, or other business related expenses, then you use a Depreciation form and carry over the depreciation to the appropriate business form. Also, don't forget to file for an investment credit. Equipment over $500 is usually capitalized and depreciated while software which is purchased seperately and equipment under $500 is usually expensed and deducted. If you don't use any of the above forms, then you need a pretty strong case that you make significant use of the computer for your job and personal finances and don't have any significant other personal uses or better yet, don't have anything but rare incidental other personal uses. The IRS is challenging the abuse of computer right-offs.