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Posted by Mark X. Rigotti, CPA on March 1, 2007, 7:25 am
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> I am currently working as an accountant for a company. I am
> studying for the CPA exam. After, I'm certified I hope to do
> tax preparation and financial planning on the side for
> individuals. I purchased a laptop in 2006 that I exclusively
> use to study for the CPA exam and I plan on using for my
> business when I become certified. Can I fill out a schedule
> C to deduct the laptop expense from my taxable income even
> though I have no gross receipts. From what I can as long as
> I am profitable 3 out of 5 years I would be able to deduct
> this. I hope to be profitable next tax season (in 2008) so I
> think I could do this. Please let me know. Any advice would
> be appreciated.
>
> Assuming I can deduct the laptop, I believe I have a choice
> of deducting it all now or deducting it over 5 years. I
> would prefer to deduct it now. Is this correct that I am
> able to deduct it 100% right away?
Wow - where to start.
You are not in business - YET. No deduction possible.
Perhaps a start up expense requering (SP?) capitalization
and amortization beginning when you begin business.
As an aside sir. There are so many very basic issues here
that I would strongly suggest you have a few more years
experience before you open your own practice.
I now remember why I waited until I had 10 years experience
before I opened my own practice and I still was not fully
prepared. I was an audit manager for an international firm
at the time and still recall the nightmares that doing
individual taxes caused me. I am sure that somewhere out
there (and I am sure many will agree) is some sort of
malpractice I committed unknowingly.
Actually, with the complexity of the IRC I still may be
committing malpractice and not know it. <BG> I guess that
is why running/owning a CPA firm is called practicing. We
keep practicing until we fianlly get it right and then we
retire. <BG> After 25+ years I guess I'll keep practicing
for awhile.
Hope that this helps.
Regards,
Mark Rigotti, CPA
(and still trying to get it right - all the time)
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