"usenetjb" <usenet.20.jimbo-black[at]antichef.net> wrote
- quote -

As opposed to not deducting it, yes.

- quote -

Section 179 allows you to deduct the cost of assets
purchased and placed in service in the current year subject
to limitiations. One of those limitations is profits of the
business. So if your business shows losses, you can not
take Section 179 expenses. There are limits on how much a
business can expense through Section 179, but a $1000
computer is well within those limits.

There are some slight twists for someone who is
self-employed, and expecially if you have earned income from
other sources (like a W-2). So you may want to talk to a
tax advisor in your neighborhood.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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"Paul Thomas" <paulthomascpa[at]bellsouth.net> wrote in news:122vp0jmspmu323

- quote -

yeah just a cheapo file server really. for some reason, i
have the idea that if its 100% used for my side business,
then that would be better tax-wise. is that not correct?

- quote -

how so? could u explain a little more?

thx

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"usenetjb" <usenet.20.jimbo-black[at]antichef.net> wrote

- quote -

Really? Not more than $1000.

The real question is when can you deduct it.

And that lies in a term called *depreciation*, which is how
you expense any given business asset over time. Computers
are 5 year property, a government term meaning that you
depreciate (expense) them over 6 tax returns. Of course,
there is always a possibility that you can expense them
quicker, given the right set of facts and circumstances.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

whats the best way to buy a computer for my side business
(writing custom software/websites)?

buy it and only use it for business? how much can i deduct
for say a $1000 server?

thx

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >