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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121338  
Subject: Re: Tax planning Date: 3/11/1999 1:30 PM
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My original question was:

My wife and I are considering buying a computer or two within the next few weeks. Presently, we both are salaried employees at our respective jobs, and we anticipate staying that way for 2-3 more years. We both expect to make substantial business use of our computer(s), along with some personal use.

After 2-3 years, my wife will remain at her salaried teaching job, but I hope to become a partner at my firm. What tax planning opportunities, if any, are available to us regarding the computer(s)? Specifically, how much advantage, if any, is there to designating one computer "work-only," or "Bob's work only"? Does the analysis change if I reach the Promised Land (partnership)? Our combined income is pretty high, so we probably can't make the 2% floor for miscellaneous itemized deductions. Thanks.


TMFTaxes (soundly) replied (in part):

Again, for a little back[g]round, you should go to the post on this issue in the Taxes FAQ area.

I continue:

I am now clear that we do not presently qualify for business use treatment because our use of a home computer is not required by either of our employers. Do the rules change, though, when and if I make partner? Once that happens, I would be self-employed, right? If so, does that loosen the requirements for business use or permit me to avoid the 2% AGI floor on miscellaneous deductions? Thanks again. --Bob
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