Thursday, August 9, 2007

Converting from Personal Use to Business Use

Maureen, from Las Vegas, Nevada asked:
First, I love your Self-Employed Tax Solution book! ... Can I take a deduction for the furniture and office equipment in my home office? I bought the furniture about 14 months before becoming an Indie and I do have the receipt for it. My fax machine, printer and laptop are quite a bit older. I don't have receipts for them or know what I originally paid so I don't their estimated current value.

The short answer is yes you may deduct them at whatever you could sell them for at a thrift or second hand shop as long as that amount is less than what you paid for the item. If the current value is more than you paid, then you can deduct your cost.

Caitlin Caterer and Eddie Electronic are new to self-employment. Here's a more detailed explanation of their equipment and supplies conversion, on my website at How to convert equipment and supplies from personal use to business use. The column is
excerpted from my book, Self-employed Tax Solutions .

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