smith@umn-cs.UUCP (06/06/83)
#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.rcf@qumix.UUCP (06/21/83)
I can't believe you need a computer to do income averaging. The form takes about five minutes to fill out, just copy four two or three numbers from old forms, one set from the current form, and do a little bit of figuring. So what's the problem. P.S.: Why is the income averaging form not included in the standard 1040 packet? Is someone scared of something?