Any Tax experts

I work for an MEP Consulting firm doing mechanical HVAC designs for commercial construction. As such, I use AutoCAD extensively. Recently AutoCAD has released an app for the iphone/ipad. I downloaded it on my iphone to see how useful it might be. Recognizing just how useful it is, I purchased an ipad (wanted one anyway). It will be extremely valuable when I'm out in the field doing survey work. Trying to make notes on a 30x42 set of drawings on a windy roof top is a major pain. I have also loaded several other apps that allow me to calculate building loads, calculate piping sizes, etc. My question is, am I allowed to write the cost of the ipad off on my taxes? Work is certainly not the only use for it. After two weeks, the ratio of work use vs non-work use is about 35/65 but I can easily see that moving to 50/50 and the potential to be at 75/25 semi-frequently. I don't want to raise any "red flags" with the IRS but it would be nice if I could write it off.

Re: Any Tax experts

No, not a tax pro... just a vetran of 2 IRS audits!

From 1988 - 2003 I ran a parttime business that required a lot of specialized equipment. Here is what comes to mind basded on my IRS experience.

My first question is: Do you do your own taxes? If not, your tax preparer can advise you best.

Second: Is this item required by your employer? i think that answer is no. Do you get an expense account for things like this?

Third: Regardless of the answers above you can't just take a lump sum deduction. Everything has a life span and the IRS has a sheet for EVERY item imaginable that tells you how much you can take each year until the final deduction is made.

Re: Any Tax experts

I wouldn't even bother unless you have your own business. I don't think it will benefit you. I think you have to hit a certain threshold before you get any return. We tried to write off my wife's parking for work a couple times which was over $40 a month and it never got us anything.

Re: Any Tax experts

Been there too with my wife at the hospital.... Parking for work is allowed. And yes there is a threshhold that must be reached to take deduction. I forget how much it was last year for me... a couple grand.... not much though maybe $3k. Once you hit that amount you file a Schedule C. That's where you get to deduct stuff.

Here's the big problem that most folks I talk with (who also own parttime businesses) just don't understand. There are "deductions" and there are "tax credits". Deductions are cents on the dollar, while tax credits are dollar for dollar. In other words, you reduce your taxible income and get more for your money when it's something that offers you a "tax credit" rather than taking it as a "deduction".

Remember those energy efficient appliance and window offers that recently expired? Folks who purchased those got a whopping reduction in their taxable income becasue the govt. offerd tax credits on those items.

Re: Any Tax experts

Thanks for the replies. I figured it was a long shot but I'll explore any avenue to save a few bucks. I do use it for work which led to my original question. As I said, I wanted one anyway so no big deal.

Re: Any Tax experts

Do you work for the firm or are you an independent contractor and work for yourself?

Re: Any Tax experts

As a contractor in Canada, I write off almost everything.
Some are lump sum some are deducted % per year.
If I needed an employee to have a certain item I would have myself or him purchase it (reimbures him) and give me the reciept.

Re: Any Tax experts

bruceb58 said:

Do you work for the firm or are you an independent contractor and work for yourself?

Click to expand...

I work for the firm. They did not ask me to buy one. Although after seeing what it will do, they are thinking of buying a few for field survey work. I do otherwise have enough deductions to itemize. Or, at least I did as of last year. No telling what's going to change in the future tax codes.

Re: Any Tax experts

....................................IRS TAX FORM.........................................



STEP 1... HOW MUCH DID YOU MAKE LAST YEAR__________________


STEP 2... SEND IT IN.............

Re: Any Tax experts

Job related expenses over 2% of your adjusted gross income will help you. If you don't meet that limit, it won't matter.

Look at lines 21 through 27 of your 2009 schedule A. Pay special attention to line 25 and 26.

Re: Any Tax experts

bruceb58 said:

Job related expenses over 2% of your adjusted gross income will help you. If you don't meet that limit, it won't matter.

Look at lines 21 through 27 of your 2009 schedule A. Pay special attention to line 25 and 26.

Click to expand...

Bruce is right. Take a look at this IRS info:

http://www.irs.gov/taxtopics/tc514.html