"Dave" <tom_sawyer70[at]yahoo.com> wrote

- quote -

Equipment purchases are not "start-up" costs. Things like
rent, utilities, etc paid before you are able to offer goods
or services are start-up costs. Equipment can be subject to
Section 179, and there are limits on the amount you can
claim. It is (as always) best to make the decision to take
Section 179 or not with the advice of a tax professional.

- quote -

A sole-proprietor can take a 179 deduction up to the amount
of profits (and that would include W-2 wages.

- quote -

A local CPA or EA that is familiar with her industry.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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My wife recently started as an independent contractor and we
are looking to purchase office equipment for her, including
a computer, etc. This equipment will be dedicated to her
business (i.e., there will be backups maintained, a
dedicated office space, etc.).

My question is...what is considered "start up" costs and/or
what can be deducted under section 179? I have heard that
as long as she has $1 in income this calendar year, we can
deduct up to the limits of the section 179 (in this case,
we're nowhere near the limits) in 2003.

I have a regular job and we file jointly. Can we write off
the startup/179 expense against my tax paid or are we
limited to writing off against her revenue?

I'm looking for a local tax professional, but would like
your thoughts, as it will me to determine who to contact
for our filing.

Thank you,
Dave

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