Strategy: Keep the PC strictly for business use. Then, you can parlay the tax savings into another computer for the rest of the family. You will often come out ahead tax-wise, plus you get an extra PC out of the deal.
This tax move will also help you preserve annual home-office deductions.
Here are the details: As a general rule, your depreciation deductions are limited if you use your PC for business less than 50 percent of its total use. For starters, you can’t use accelerated depreciation (including deductions claimed in future years). You may even have to recapture tax benefits during a year that your business use drops below 50 percent.
Finally, you can’t take advantage of the
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- Can I deduct a relative's medical expenses?
- Explore new generation of Internet-based payroll services
- The 3 health reform changes most likely to survive this fall
- Your first shot at a manufacturing write-off