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Subject Author Date
tax writeoff? martin lynch 02-23-2008
---> Re: tax writeoff? removeps-groups...02-23-2008
Posted by martin lynch on February 23, 2008, 7:37 am
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 Here's the situation:

Graduating on May 10th.
Begin medical residency on July 1.

I'm required to purchase some really expensive camera equipment for
residency ($1,000+ worth). Will this purchase be tax deductible? I
am paying 100% myself (not reimbursed by hospital).

Also, would I be required to purchase the camera after May 10th?
After July 1? I'd like to purchase it now, as I found a bargain on a
kit that won't last....

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Posted by Allan Martin on February 23, 2008, 11:25 am
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> Here's the situation:
>
> Graduating on May 10th.
> Begin medical residency on July 1.
>
> I'm required to purchase some really expensive camera equipment for
> residency ($1,000+ worth). Will this purchase be tax deductible? I
> am paying 100% myself (not reimbursed by hospital).
>
> Also, would I be required to purchase the camera after May 10th?
> After July 1? I'd like to purchase it now, as I found a bargain on a
> kit that won't last....

The date the camera is put into business use is the date you should use.
There are a lot of other factors not mentioned in your post that will
determine if the 2106 miscellaneous itemized deduction (Depreciation or 179
expensing of the camera) will have any benefit to you.



>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used, >>
> << nor can it used, for the purpose of avoiding penalties >>
> << that may be imposed upon the taxpayer. >>
> << >>
> << The Charter and the Guidelines for submitting posts >>
> << to this newsgroup as well as our anti-spamming policy >>
> << are at www.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by removeps-groups@yahoo.com on February 23, 2008, 1:03 pm
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> I'm required to purchase some really expensive camera equipment for
> residency ($1,000+ worth). Will this purchase be tax deductible? I
> am paying 100% myself (not reimbursed by hospital).

You can include equipment as part of qualified education expenses only
if they are required as a condition of enrollment and must be paid to
the school. Then you can take the lifetime learning credit or tuition
and fees deduction, provided you qualify for it (as long as your AGI
is not too high, etc). From your next paragraph, it seems you can buy
the cameria anywhere you want, so it would not be deductible

http://www.irs.gov/publications/p970/ch03.html#d0e3168
http://www.irs.gov/publications/p970/ch06.html#d0e5923

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by dpb on February 23, 2008, 5:42 pm
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removeps-groups@yahoo.com wrote:
>
>> I'm required to purchase some really expensive camera equipment for
>> residency ...
>
> You can include equipment as part of qualified education expenses ...

But by the time start residency, might not possibly be considered as a
business expense rather than educational???

--

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by removeps-groups@yahoo.com on February 23, 2008, 11:05 pm
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> removeps-gro...@yahoo.com wrote:

> > You can include equipment as part of qualified education expenses ...
>
> But by the time start residency, might not possibly be considered as a
> business expense rather than educational???

If he buys his equipment on May 10th, or anytime in the year, and
residency starts July 1, then the equipment is still a qualified
expense as long as it is required to be purchased from the university
as a condition of enrollment.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>


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