[net.taxes] Compooter Write-off

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.