Possible to get a tax deduction with my new computer?

[Shelly21]

I just purchased some parts for my next computer. To go with the free 19" Dell LCD that my company gave me for my home office.

It's only an Athlon XP 2800+ (my very first AMD) with 2 expensive sticks of PC2700 512 mb from Crucial plus other parts.

I was wondering if I can deduct this for this Tax year, since I will use it for VPN connections to work when I'm on call.

 

[RagingBITCH]

...10 seconds until CPA or Vic comes in here and responds...9...

 

[neovan]

Yes...but better to ask CPA

 

[Descartes]

The part of the IRC that discusses these deductions is Section 179, and you're allowed up to $25,000/yr of immediate deduction; otherwise, you have to depreciate the value of the item over several tax years.

The trouble with your situation is it seems you'll be using it mostly for personal, and some for business. I doubt you'd ever get caught in an audit for such a deduction, but technically you're only supposed to deduct the percentage of its use for business.

[edit]Scratch what I'm saying. I'm an S-Corp, so Section 179 applies to me, but not if you're a W2 employee. Yes, ask CPA [/edit]

 

[Garet Jax]

Originally posted by: Descartes
The part of the IRC that discusses these deductions is Section 179, and you're allowed up to $25,000/yr of immediate deduction; otherwise, you have to depreciate the value of the item over several tax years.

The trouble with your situation is it seems you'll be using it mostly for personal, and some for business. I doubt you'd ever get caught in an audit for such a deduction, but technically you're only supposed to deduct the percentage of its use for business.

I thought it had to be 100% used for business to be deductible. Or is that only a home office?

 

[desteffy]

Probably, but...

I suggest you just find a good CPA and have them do your taxes for you. For me, the money I save for random things like this is WELL worth it.