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  1. #1
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    MB,CPU,RAM,DVD-ROM,HD,monitor - everything goes. But what about a sound card? And speakers? Can I take them off my taxes? If yes, what if the soundcard costs $300, and the speakers cost $500? Is it still okay?

  2. #2
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    You can usually take off whatever percentage you use for your business. So if you are spending half your time playing games on that thing...

  3. #3
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    Oh no, it's not for games (and I don't play even tetris!), in fact I'm 100% busy making money to pay my taxes.
    I'm going to build me a powerful Unix box to deal with all the databases. It will have a windows partition also, but I don't play games! lol
    So, I saw a nice soundcard and a pair of speakers. At musiciansfriend.com.
    If I bought a PC from HP, speakers and a soundcard would be included, so it would go off my taxes. But since I'm building my own comp, would it be okay to add some good sounding speakers too? Or must they say "PC Speakers" on the box?
    See, it's tricky!

  4. #4
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    ...then make sure you have a game site and you are researching games.

    Because of my sites and some free-lance writing i do, my business pays for my pc, games and even cable tv.

    Chet

  5. #5
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Chez Noir:
    Because of my sites and some free-lance writing i do, my business pays for my pc, games and even cable tv.
    <HR></BLOCKQUOTE>

    Chet, so if I make a site tomorrow about "How to play guitar", put a few affiliate links to Amazon and musiciansfriend, and a few video examples of me teaching how to play "Here Comes the Sun", I can take the costs of all the musical and video equipment off my taxes? That way I might even buy all that stuff through my own links, and then have a commission to show that my site is profitable... Am I right?

    But back to the soundcard, doing just the affiliate business, is it a part of my PC, or it's an option I can't take off my taxes? I might never use it, but can it be considered as a typical computer hardware?

  6. #6
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    I do not take it off my taxes after being paid. The company pays for it instead. Since that money has yet to be taxed (payroll etc), that is essentially tax free money (there is some tax stuff that goes on that my accountant does, I stay blissfully ignorant). But this is one of the very real benefits of running your sites through a company, not as an individual.

    Also, I do not separate out the parts of the computer, they are all under the same general expense heading, so there is no differentiating between a CPU vs a sound card and I don't see why in any situation you would break it down further.

    I wouldn't risk it with one little site etc, but if a decent portion of your income came from a music site, I would not think there would be any issue doing that. Make sure to document everything, no irs agent or accountant ever says - that is too well documented.

    Of course, the best thing, ask an accountant in your state. Most will give you a free consultation, take it. You will find many ways to save your butt now, that will not be available to you later once you go after the year is over. I really would stress that with anyone - if you aren't now - go to an accountant. Take that first money and invest it in your future by paying for a real accountant, it is probably dollar for dollar the best investment you can make.

    Chet

  7. #7
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    KtoEto,

    Why arte you itemizing your computer? Take your taxes off as a whole system.

    Remember what you take off for federal taxes get placed right back on when you file your state business property taxes.

    Have to love the system.

  8. #8
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    Chet, thanks a lot, I will talk to my tax lady today or tomorrow, and I think I'll find a new one. The tax season is coming soon, and it's like another reversal day, which came today


    SandraR, I buy computer parts from different online stores, so on paper it looks like I bought a motherboard or a soundcard for my business, not a computer. And if a computer can't run without a motherboard, buying one looks alright. But it can run without a soundcard, so do I really have to prove I needed one, or I just say a soundcard is a part of any modern computer on the market today?
    I don't think it might be an issue with a $7 soundcard, but it's not a $300 one.
    Business property taxes? Oh no....

  9. #9
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by KtoEto:
    Business property taxes? Oh no.... <HR></BLOCKQUOTE>


    You had better get on top of that one, go to your local tax office and get the paper work. If you report any business taxes you will CRY when they find out you have not even filled out your forms for your business property taxes.

    At that office they will also hit you with city license and who knows what else. For me City license is only $40.00 a year not so bad, also dependant on your state, property taxes are CRAZY depreciation on my computers are 5 years. Like anyone in there right mind would still have a business computer 5 years from now. It’s a pisser.

    Even if you do create your computer by buying parts from all over the place, you can consolidate it to 1 functioning system, unless you are in the business of building computers and reselling them.

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