Timeline for What are the ins/outs of writing equipment purchases off as business expenses in a home based business?
Current License: CC BY-SA 3.0
9 events
| when toggle format | what | by | license | comment | |
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| Oct 29, 2012 at 2:43 | comment | added | Dilip Sarwate | @stoj Yes, and that is what I said in my answer, that some items can be expensed. | |
| Oct 29, 2012 at 0:46 | comment | added | stoj | It has been a couple of years since I was self employed but as I remember there was always a special depreciation category (section 179) that allowed a small business to immediately deduct many items immediately up to a certain amount (~$25k). | |
| Oct 25, 2012 at 21:27 | comment | added | JTP - Apologise to Monica♦ | @SundayMonday - I commented, but this is outside my particular focus. Home office expense is attributed to areas solely used for business. I'll defer to Dilip/Little on the details here. If your income is decent, and you're paying your taxes, I have a tough time imagining an auditor getting that nit-picky. | |
| Oct 25, 2012 at 20:08 | comment | added | SundayMonday | @JoeTaxpayer to clarify I'm wondering about renting computers, chairs etc and other capital items because maybe I can just write off the cost of renting them instead of dealing with the depreciation (since I don't own the items when I rent them). Also I'm not doing anything tricky where I have, say, an iPad that's used for both work and personal stuff. I'm talking about using my original iPad for personal stuff and buying an iPad 2 and 3 solely for app development. | |
| Oct 24, 2012 at 19:22 | comment | added | Dilip Sarwate | @JoeTaxpayer Yes, the taxpayer still has the burden of proving business use, but suppose that a self-employed programmer claims that he uses his iPad/iPhone/laptop solely for business purposes and thus is entitled to claim 100% of the cost as a business expense. If the taxpayer does not have another similar item for personal use, he should pray that the auditor is so extraordinarily naive and gullible that the auditor will accept such a claim at face value. Having another similar item, maybe even a different brand or platform (e.g. Android), for personal use will mitigate some suspicion. | |
| Oct 24, 2012 at 18:56 | comment | added | JTP - Apologise to Monica♦ | why? you still have the burden of proving business use. | |
| Oct 24, 2012 at 14:11 | comment | added | SundayMonday | Interesting. Makes me wonder if renting the iPad or a computer could perhaps be advantageous from a tax perspective. | |
| Oct 24, 2012 at 2:33 | history | edited | Dilip Sarwate | CC BY-SA 3.0 |
added 2 characters in body
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| Oct 23, 2012 at 21:29 | history | answered | Dilip Sarwate | CC BY-SA 3.0 |