Frank S. Duke, Jr. wrote:
- quote -

There are "tricks" as to the computer usage and such.

After 6 years, a computer is fully depreciated (via S/L, so
no 179 recapture) and can be converted into a "personal use"
machine. Many people are in the habit of replacement, but
why not KEEP the older, fully depreciated machine as the
personal use one. Then, the IRS cannot simply raise the
personal use question and expect that the business use on
the newer machine cannot be 100% because the taxpayer can
point at the older machine and say, "that's what the kids
use, etc...."(e.g.). OK, so this means that every 6 years
you buy a new 100%-business-use computer instead of 3, but
think about it another way: After 6 years, your $1,000
computer will be worthless, so although its fully
depreciated (adjusted basis of $0), there won't be a gain on
sale because you'll have to GIVE it away (and no gift tax
either!). That's much better than having to fill out a form
4797 for it.

Same thing with other assets that lend themselves to PU,
especially when older.

If people would just think things through, sometimes, an
answer will just pop out!

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Arthur L. Rubin wrote:
- quote -

Since when did anyone say that a home-based business has to
"make its money" by making its sales? It's "profit" could
be the tax refund(s) it causes! :-)

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Brian Collie at bc[at]sbcglobal.net wrote:
- quote -

I think I agree with suggestion #2. How is a home based
business a tax shelter? The IRS is well aware of the tactic
of trying to convert living expenses into "business
expenses" and it coming down hard on people who are doing
that. If you really have a home based business, that you
actually make money at, you have incremental expenses that
you wouldn't have if you didn't have the business. There is
no free lunch. If you only use your computer for business
half the time, you only get to deduct half of it. The
"regularly and exclusively" test for home office space is a
tough one to meet. I have a home based business and there
is no tax bonanza in the deductions. The expenses are real
and mostly incremental. The small deductions for insurance,
utilities and depreciation for the fraction of my home
occupied by my office are certainly no bonanza of riches.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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Brian Collie wrote:
- quote -

Well.... yeah. Mostly. Don't forget the FICA tax of
course.

For seniors still working who already have a moderate nest
egg though, and already drawing big social security checks,
it's not worth it, esp in the 10 - 15% tax brackets.

Again, "facts and circumstances" (F&A)

Cheer$,
Harlan Lunsford, EA n LA

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eagent[at]alliancetax.com says...
- quote -

Actually, it is home-based business. Because the words home
and based modify business, they should be hyphenated.

Gary

--
You can probably X figure out X which letters to X delete to
derive my email address X.

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Mark Rigotti, CPA" <rigotti[at]wideopenwest.com> wrote:

- quote -

Amen to that. This whole area of tax deductions is one of
the most misunderstood in personal finance.

I take the standard deduction (because I don't have enough
itemized deductions) and love it. Further, we max out
401ks, supplemental deferred comp arrangements, an FSA for
medical expenses and do the Schedule C for home based
businesses. Somewhere in there is my best tax move.

-HW "Skip" Weldon
Columbia, SC

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"alkitim" <alkitim[at]hotmail.com> wrote:

- quote -

I think that maximizing retirement plan contributions is the
best tax shelter. You don't pay tax on the income
(currently) and you get to keep it all for yourself. What a
deal!

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"alkitim" <alkitim[at]hotmail.com> wrote:

- quote -

I think the best thing you can do is learn better grammar.
It is home BASED business. Unless of you course you are
talking about working behind where the batter stands in a
baseball game.

Gene E. Utterback, EA

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"Dan Evans" <dan[at]evans-legal.com> wrote:
- quote -

I couldn't agree more - after 3 months of "... I need more
deductions..." and replying -

" I never recommending paying $1,000 just to save $250 in
taxes (25% federal rate - there is no Michigan benefit since
MI is a pure AGI state)"

Clients always look at me strangely after that comment then
I explain the economics simply as give me $100 and I'll give
you $25 back and we're even and somehow they then get it.

--
Regards,

Mark Rigotti

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alkitim wrote:

- quote -

I think it contradicts the usual assetion that home-based
businesses make money. It may very well be true, though.

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alkitim wrote:

- quote -

Are you selling books or seminars. Those are good
businesses, even if they contain bad advice.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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alkitim <alkitim[at]hotmail.com> wrote:

- quote -

Dude, so do I! It's like we've got ~so~ much in common!

MTW

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lkitim[at]hotmail.com (alkitim) wrote:

- quote -

The best tax shelter for the average American is home
ownership. Period. Instead of non-deductible rent, you get
a deduction for mortgage interest and real estate taxes and
the appreciation is exempt from tax.

It doesn't get much better than that.

For a real home-based business, the deduction is not really
a major factor. I work out of my home, and I get a small
benefit from deducting some of the electricity and insurance
costs, and a small amount of depreciation, but the mortgage
interest and real estate taxes would have been deductible
anyway so what's the big deal?

So yes, there's a deduction, but I would NEVER recommend to
anyone that they start a home-based business just to claim
the deduction.

(Of course, my tax returns are honest.)

*Dan Evans
*"One is not superior merely because one
*sees the world as odious."
*Francios Rene de Chateaubriand (1768-1848).

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alkitim[at]hotmail.com says...

- quote -

Dick,

Did you fall asleep at the moderator's wheel?
This has the look of a MLM scheme.
If you click on the above link, you can see that it
is assigned to Tim & Kippy Jo Spencer at 206.923.2884.

Gary

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I feel the best Tax Shelters for the Average American is a
Home Base Business. What do you think?

Work From Home... I Do!
http://www.s4fs.com/cgi-bin/team.cgi...35&action=show
alkitim[at]hotmail.com

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