Consultant Needs a Development Server

#3 08-01-2003, 10:35 PM

Gene E. Utterback, EA wrote:
- quote -

> "JeffP" <JPgmtNoSpam[at]sbcglobal.net> wrote:

> > I guess I need to buy a development server.
> > > I don't get the idea of depreciation.
> > > Who is benefits from this?
> > > If I do, I don't want to. My headache of having to deal
> > with anything more than the purchase taxes me personally.
> > > I would like to take the full amount the first year and be
> > done with it as a business expense, just like any other
> > item, like gas for my car that lasts about 3 or 4 days, the
> > new computer will be outdated just after I open the box and
> > plug it in, correction maybe even before Fedex drives down
> > my street.
> > > Anyway, is there a simple clean way to depreciate my new
> > system?

> Yes, but frankly if you don't understand basic depreciation
> and feel "taxed personally" be having to deal with it then
> you need a professional. You can take advantage of Internal
> Revneue Code Section 179 and write a BIG portion off in the
> year acquired and placed in service but then you have to
> worry about depreciation recapture if you dispose of the
> item before it would have been depreciated using the
> ordinary depreciation rules.

Good to see you're back, Gene.
And while you're at it, and seeing you're also a punster,
go ahead; ask me how my day was today?

"Rather taxing", I would reply.

Cheer$,
Harlan Lunsford

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#2 07-31-2003, 04:05 AM

JeffP wrote:

- quote -

> I guess I need to buy a development server.
> I don't get the idea of depreciation.
> Who is benefits from this?
> If I do, I don't want to. My headache of having to deal
> with anything more than the purchase taxes me personally.
> I would like to take the full amount the first year and be
> done with it as a business expense, just like any other
> item, like gas for my car that lasts about 3 or 4 days, the
> new computer will be outdated just after I open the box and
> plug it in, correction maybe even before Fedex drives down
> my street.
> Anyway, is there a simple clean way to depreciate my new
> system?

You'll be happy to know, that your prayers are answered, and
there IS a simpler system. It's called Section 179.

However, if you (and spouse if married) don't have enough
income to qualify, then you either defer the section 179
deduction or choose depreciation.

Or... I guess you don't really have to take any deduction.
Best see a local tax pro for help I think.

Cheer$,
Harlan Lunsford, EA in LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#1 07-31-2003, 04:05 AM

"JeffP" <JPgmtNoSpam[at]sbcglobal.net> wrote:

- quote -

> I guess I need to buy a development server.
> I don't get the idea of depreciation.
> Who is benefits from this?

Umm, you do.

- quote -

> If I do, I don't want to. My headache of having to deal
> with anything more than the purchase taxes me personally.

Too bad. Deal with it. If you don't want to deal with it
personally, hire a local professional to deal with it for
you.

- quote -

> I would like to take the full amount the first year and be
> done with it as a business expense, just like any other
> item, like gas for my car that lasts about 3 or 4 days, the
> new computer will be outdated just after I open the box and
> plug it in, correction maybe even before Fedex drives down
> my street.
> Anyway, is there a simple clean way to depreciate my new
> system?

Maybe, but you gave no facts to offer an opinion.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

07-31-2003, 03:46 AM

"JeffP" <JPgmtNoSpam[at]sbcglobal.net> wrote:

- quote -

> I guess I need to buy a development server.
> I don't get the idea of depreciation.
> Who is benefits from this?
> If I do, I don't want to. My headache of having to deal
> with anything more than the purchase taxes me personally.
> I would like to take the full amount the first year and be
> done with it as a business expense, just like any other
> item, like gas for my car that lasts about 3 or 4 days, the
> new computer will be outdated just after I open the box and
> plug it in, correction maybe even before Fedex drives down
> my street.
> Anyway, is there a simple clean way to depreciate my new
> system?

Yes, but frankly if you don't understand basic depreciation
and feel "taxed personally" be having to deal with it then
you need a professional. You can take advantage of Internal
Revneue Code Section 179 and write a BIG portion off in the
year acquired and placed in service but then you have to
worry about depreciation recapture if you dispose of the
item before it would have been depreciated using the
ordinary depreciation rules.

Get professional help,
Gene E. Utterback, EA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#-1 07-30-2003, 07:57 PM

I guess I need to buy a development server.

I don't get the idea of depreciation.

Who is benefits from this?

If I do, I don't want to. My headache of having to deal
with anything more than the purchase taxes me personally.

I would like to take the full amount the first year and be
done with it as a business expense, just like any other
item, like gas for my car that lasts about 3 or 4 days, the
new computer will be outdated just after I open the box and
plug it in, correction maybe even before Fedex drives down
my street.

Anyway, is there a simple clean way to depreciate my new
system?

TIA

JeffP....

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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