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Gaze
02-05-2006, 12:04 PM
For those who do their own taxes (and know the scoop how to deal with IRS tax filing relative to software purchases)... :help:

A few questions:

Say I bought a bunch of software in '05 (such as LW) for learning purposes with the intent to offer CG services. How may I deduct these costs?

I also bought books and hardware. How about these?


Thanks for help!

Gaze
02-05-2006, 03:13 PM
yes, I'm speaking of the self-employed category

probably going the TurboTax route

hrgiger
02-05-2006, 03:44 PM
I'm not sure you can deduct the price of the software if right now you only have an intention to make money from it. Then it would seem that everyone could deduct the price of the fuel they put into their car because they intend to get a delivery job (and then never do). I'm no tax law expert by any means but that seems pretty iffy.

androidmaker
02-05-2006, 04:09 PM
turbo tax will ask you for all that information and yes you can deduct it.

Silkrooster
02-05-2006, 04:21 PM
Say I bought a bunch of software in '05 (such as LW) for learning purposes with the intent to offer CG services. How may I deduct these costs?
Thanks for help!
Simple you can't. Not with the "intent" anyways. You must be in business and all items that are business related can be deducted, but nothing for personal use. If an item such as a computer will be used for business and personal, then only a percentage of the computer can be deducted.
You should have aproximately 1 year to get everything in order for a deduction. I beleive if you purchase after Jan. 1, then you must wait until the next year to claim it.
So anything you buy now, keep the receipts as you may be able to go back and claim it. Not sure on how far back you can go. I think 1 year, but not positive. This you will need to talk to an accountant about. Which would be an excellent idea before you do anything, as they can give you any details you need. After all i could be wrong. :hey:
Silk

mattclary
02-06-2006, 06:11 AM
Do you curtrently have a business set up and are you filing the appropriate forms for that business tax wise? If you said "no", then the answer is "no" to your question. If you have a business and other write-offs, then it's just a question of will you get audited and get caught. Personally, I wouldn't bother, not unless you have a bunch of other write-offs to go with it.