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  1. #1
    Full Member
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    I'm considering buying a new PC and want to know if I use it exclusively for working on my web site, can I write the entire purchase price off of this year's taxes or do I have to depreciate it over a three-year (?) period.

    Thanks.

  2. #2
    Member
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    Hi sweat,

    I'm not sure about the US but here in the netherlands it's like this:

    -Buy a computer in 2003
    -Write off the paid taxes for the pc
    -Write off a maximum of 1/3 of the pc's price (ex vat)

    Then the 2nd and 3rd year you write of the other 1/3. In the netherlands we have to calculate the expected price we get back for the 3 year old computer too, so for example:

    -Computer is $2000 excluding taxes.
    -You expect the computer is worth $500 after 3 years.
    -$1500 left, so you write off $500 a year, excluding the taxes.

    Hope that makes sense, explaining in english is new to me

  3. #3
    ABW Ambassador
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    You can write it all off this year.

  4. #4
    ABW Ambassador
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    Yep, write it all off this year. What I'm planning on doing this year, at least.



    Jim

  5. #5
    The affiliate formerly known as ojmoo
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    You can do either if you want. It really comes down to the price of the computer. If it is over $1000 you probably should depreciate it so it won't raise red flags with the IRS. If it is under $1000 then call it computer hardware and deduct it all. Computers under $1000 are obsolete within a year anyway. Those over $1000 are probably obsolete in 18 months

    This is what my accountant tells me.

    Mike

  6. #6
    ABW Ambassador
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    With the computer you can actually buy it on December 31st and not have to pay for it until later if you use a credit card. With charitable contributions made on a credit card, you must make payment in this year.

    I hope that makes sense, as we too are getting our ducks in a row and just purchased 3 new computers to use for affiliate marketing.

    Robin

  7. #7
    ABW Ambassador
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    You can write off up to $100,000 for office supplies, so you can go way over $1,000 for a computer

    www.cjshoppingnetwork.com

  8. #8
    ABW Ambassador
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    Have had to use it as capial cost and devalue some each year over here

    AM is like any other business
    Have an accountant/tax expert or consult local tax office and not message boards to avaoid any surprises later on down the road

    ...............
    WW

    Make a difference! Support your local Cancer Care providers.

  9. #9
    ABW Ambassador
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    Yeah, do not take the advice that you get on the forums as sound advice. Go see an accountant.
    We went to see one last week

    www.cjshoppingnetwork.com

  10. #10
    Moderator MichaelColey's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by cjshoppingnetwork:
    You can write off up to $100,000 for office supplies, so you can go way over $1,000 for a computer<HR></BLOCKQUOTE>I'm not sure that's accurate on several points.

    1) I don't think there's a limit to what you can write off as office supplies.

    2) A computer is an asset, not an office supply. It has to be depreciated, unless you take advantage of Section 179.

    Michael Coley
    Amazing-Bargains.com

  11. #11
    ABW Ambassador
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    They changed section 179 this year. You can take up to $100,000 of office equipment (including computers and off the shelf computer software) and can deduct the full amount of these products up to the limit as long as the equipment or software is installed by December 31.

    http://www.bankrate.com/brm/itax/Edi..._deduction.asp

    But I agree with the other posters - don't take advice from a chatroom.

    Kip

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