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Posted by Paul Thomas, CPA on June 29, 2006, 12:15 am
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>> Really? Not more than $1000.
> 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?
As opposed to not deducting it, yes.
>> 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.
> how so? could u explain a little more?
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@bellsouth.net
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