tax questions

If the computer was used exclusively for business, and was used at business locations, then it can be treated as a business equipment purchase. If the computer has any games on it, or is located in a part of your house where your family has access, or was used for any personal business, then it is not a business tool and likely cannot be deducted.

This has nothing to do with the standard deduction. Standard deduction is a 1040 item. Business equipment goes on schedule C. You have two options...you can depreciate it over the live of the equipment, or you can take an accelerated deduction and write it off all in one year. Your choice.

-john-

Your second sentence here is likely not accurate advice.

I'd direct Shane to this IRS publication which talks about shared business and personal use of an asset. Percentages of business vs personal use are available:

An as to the game issue... the corporate laptops I've been issued by my employer came with games on it. It is quite certainly a business tool and I'm certain they write off the lease $ for it. They realize that employees sometimes sit in airports and in hotels and might not be working 24/7.

Shane, check out the following FAQ's (where writing it all off in one year = section 179 deduction)

any of the the several tax newsgroups as this topic is likely toget closed by our moderators as none of this really hits on financialplanning. The publication for small business will also be somethingto read and pub 535speaks to what is deductible in detail and this pub talksabout the decision to section 179 an expense in one year or todepreciate it

However, if this is your first time filing a schedule C you might at least consider finding a local CPA that does personal income tax (note: these are different than Hewitt, or the H&R Block or similar punchkey monkey tax services) to do your taxes this year since you raise a few questions here that you might be assured of by a pro. And it won't cost much.

On the other hand, filing a schedule C is remarkably easy with modern tax software, but the first time going through all the business deductions and where to put things, whether to depreciate or section

179 stuff can be a bit confusing. Personally for me, if I had $4000 of side income on the + side, I'd section 179 that computer on my schedule C to reduce my taxable income from that business endeavor and offset as much of that income as possible.

Best Regards,

-- Todd H.