rick++ wrote:

- quote -

Are we now saying that we should try to write the computer
off under IRC 212 as only the tax software will tell us that
we can't otherwise write it off for either educational or
business purposes? :-)

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I wouldn't entirely blame the student for the mispreception.
There are many more deductions and credits than there were
20 years ago. It seems like Congress adds a few more before
every election. Its almost impossible to catch them all
without computer tax software or a specialist.

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bluerave wrote:

- quote -

Not deductible. A computer is listed property which needs
to be used in a trade or business to be deductible. You
don't have a job.

Even so, it looks as if you're training for a [new] job and
thus don't currently meet the minimum requirements, so not
even the education is deductible (via the business rules).

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"bluerave" <brandonclark[at]gmail.com> wrote:

- quote -

1) It's not a recognized educational expense.
2) You won't have taxable income to deduct it against
if it were deductible.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"bluerave" <brandonclark[at]gmail.com> writes:

- quote -

Lucky that you're not going to be a tax major <g> .

You will have no income--gifts aren't income. Refunds from
tax returns are refunds of your money that's been
withheld--no payments, no refund (ignoring refundable
credits, which don't apply here).

Instead of giving you money you parents should pay your
expenses directly to the institution. They would then be
eligible for the tax benefits explained in IRS Publication
970.

Phil Marti
Clarksburg, MD

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"bluerave" <brandonclark[at]gmail.com> wrote:

- quote -

If your income will be only $1,000 for the year, you won't
owe any taxes. When you file your W-4 with your employer,
check off the "exempt" box so that they won't withhold
taxes. Then you won't pay anything, and won't get anything
back.

Since you won't be making enough to owe taxes, there's no
tax benefit to the computer.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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- quote -

Nope, there is no deduction for the PC.

Helen, EA in PA
Director, NAEA; Immediate Past President, PSEA; Tax Expert, AOL
Enrolled Agents - THE Tax Professionals

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- quote -

Easiest question first - if your income is only $1000 for
the year, you will owe no income tax. And gifts are taxable
income to you. So even if the computer were deductible, you
can't lower your income taxes below zero.

If you earned more money and actually owed taxes, there are
several Education deductions or credits that could reduce
the amount that you owed. But these are based on tuition and
fees only, not books or other required equipment.

--
Don EA in Upstate NY

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- quote -

First, congratulations on living in the Promised Land of
North Carolina.

Second, the answer is NO!

Third, the reason the answer is NO is that 1) education that
prepares you for employment is not a deductible expense and
2) the computer is not a business expense.

Dick

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I am 24, living in North Carolina going to college part-time
this semester, full time next. I am taking Information
Systems for my major, which is basically computer
networking/administration. I need a computer for my
classes. Can I buy a computer and have it deducted from my
taxes for the next year. My income will be around $1,000
for the whole year with my parents giving me money as a gift
each month, not exceeding $12000 for the year. If so, does
this mean if I buy a $1000 computer, I will receive $1000
the next year on my taxes?

Thanks
absolutepunk[at]peoplepc.com

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