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From: dgary@ecsvax.UUCP (D Gary Grady)
Newsgroups: net.micro
Subject: Re: Deducting micros?
Message-ID: <650@ecsvax.UUCP>
Date: Tue, 5-Feb-85 10:29:53 EST
Article-I.D.: ecsvax.650
Posted: Tue Feb  5 10:29:53 1985
Date-Received: Sun, 10-Feb-85 03:47:09 EST
References: <636@ecsvax.UUCP>
Organization: Duke U Comp Ctr
Lines: 28

<>
A few corrections and additions to my recent posting on deducting
micros:

First, I am now given to understand that the maximum amound deductable
in one year on a micro system purchased prior to June 18 is $5000, not
$7500 as I wrote.

Second, I may have been wrong when I said that you must be able to
substantiate that your micro is used at least 50% for business (on
machines placed in service on or after June 18, 1984) in order to deduct
it.  I have seen one source that claims that with less than 50% use you
can still deduct it, but you must depreciate it (instead of deducting
the whole cost in one year) and you cannot get the investment tax
credit.

My feeling (and remember I'm not an accountant!!) is that if you bought
the machine before June 18 and you can substantiate business use of x%,
you're probably safe taking x% as an employee business expense in one
year.  If you plan to depreciate (for example, if you anticipate higher
income in the future) or you bought it after June 18, most of us should
have an accountant handle it.  I mean, reading hex dumps is trivial
compared to reading tax law...
-- 
D Gary Grady
Duke U Comp Center, Durham, NC  27706
(919) 684-3695
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