Tax Writeoff MacBook and iTouch

[Partial]

I'm a freelance consultant who does IT work. I'm looking to make an iPhone app over the next few months. With that said, since I have an LLC, It would be legal to write off the entire expense of a new MacBook 13", iTouch and printer, right?

Also, since these items are for a business are they able to circumvent sales tax?

Thanks,
Dan

[torifile]

I'm a freelance consultant who does IT work. I'm looking to make an iPhone app over the next few months. With that said, since I have an LLC, It would be legal to write off the entire expense of a new MacBook 13", iTouch and printer, right?

Also, since these items are for a business are they able to circumvent sales tax?

Thanks,
Dan
Yes, you can write them off. The sales tax thing is probably a no since, as far as I know, only things for bought for resale don't get taxed. It might be a state by state thing.

[turtle]

Yes, but you'll need to be sure to depreciate them as well as claim them for taxes in your locality. Virginia charges tax on property by business owns as well as my city. Needless to say it's all about taxes. They all want their hand in it. :(

Edit: to add onto torifile's comments about sales tax, you should actually be subject to a lower tax rate in some cases. Here in VA I was able to keep .5% or sales tax as a retail company. Since I morphed my company in a services based company (much like what you describe though mine is an S Corp) I pay full retail tax like anyone else. You really need to check with a local accountant who knows your tax law.

Second, don't skimp and be sure to let someone who knows books do your taxes. It's worth it.

[JohnnyTheA]

Yes, but you'll need to be sure to depreciate them...

That depends. You can sometimes write off all of the purchase in the first year. There is some loop-hole that allows this.

JTA

[Yontsey]

WIth a business, you can right off just about anything you want. That's the beauty of running your own business.

There's not going to be someone watching your every move saying you're not using that Touch for business or pleasure.

My motto is if you think you can, you can. I let my tax guy handle the in's and out's but I write off just about everything I buy.

[cosus]

Yes, but you'll need to be sure to depreciate them as well as claim them for taxes in your locality. Virginia charges tax on property by business owns as well as my city. Needless to say it's all about taxes. They all want their hand in it. :(

Edit: to add onto torifile's comments about sales tax, you should actually be subject to a lower tax rate in some cases. Here in VA I was able to keep .5% or sales tax as a retail company. Since I morphed my company in a services based company (much like what you describe though mine is an S Corp) I pay full retail tax like anyone else. You really need to check with a local accountant who knows your tax law.

Second, don't skimp and be sure to let someone who knows books do your taxes. It's worth it.

WIth a business, you can right off just about anything you want. That's the beauty of running your own business.

There's not going to be someone watching your every move saying you're not using that Touch for business or pleasure.

My motto is if you think you can, you can. I let my tax guy handle the in's and out's but I write off just about everything I buy.

Depreciation is true. So you can't immediately take it a deduction until you sell it. That why it's smarter to lease cars, the entire lease, excluding the down payment, is tax deductible. Maybe financing that laptop would make it easier to deduct. Then you can only deduct the percentage that you actually use it for work. Deduct too much, you might get a audit, best to keep all receipts, I personally scan them before they get unreadable. Then you also have entertainment costs that are deductible, but only up to 50%.

Hmm, Apple seems to have a finance option for computers, is that deductible for a small business?

Also, LLCs aren't as powerful as they once were, so be wary of piercing the corporate vail.

[Partial]

For what its worth, this computer and iPod Touch would be strictly for business usage. Or at least that's my story and I'm sticking to it as I have a separate personal computer.

I was planning on deducting the whole thing this year. My LLC will technically lose money this year while I'll be making just over 60k in W-2 income. Think I'll be fine deducting this guy?

[Robo]

Are you getting the 13" MacBook Pro or your so-called "white knight"? Just curious. :)

[Partial]

Are you getting the 13" MacBook Pro or your so-called "white knight"? Just curious. :)

I'm going to get the pro. The cost difference isn't as great anymore and I end up getting about a third of the difference back. The white knight is a bargin right now, but its so hideous compared to the silver sliver.

[Robo]

I'm going to get the pro. The cost difference isn't as great anymore and I end up getting about a third of the difference back. The white knight is a bargin right now, but its so hideous compared to the silver sliver.

Yeah, the 13" MBP is where it's at. Always was, IMO, but now it's an even better deal (FW? SD? IK? OMG!). :D

[stratotom]

Just picked one up myself with an edu. discount. Have to admit, the resurrection of FW may have been a significant straw... :cool:

[Partial]

This notebook is spectacular. The track pad being one giant button takes some getting used to as I typically rest my thumb on the "bottom button". Overall, 10/10 so far. I'm very happy with it, but admittedly have used it to do some basic web surfing so far. The keyboard is really nice, and the ambient light sensor/backlit keyboard is wonderful. I've been going in and out of dark rooms and its been pretty darn nice so far.

[Brad]

The track pad being one giant button takes some getting used to as I typically rest my thumb on the "bottom button".
A coworker let me try out his new MBP recently with the "one giant button" trackpad because I tend to rest my thumb on the button and I was worried I'd accidentally trigger clicks or two-finger gestures. Apparently Apple anticipated this and the software ignores your thumb if it's touching mostly stationary in the bottom area of the trackpad where the button used to be. I was really worried about that. Go Apple!

[Partial]

I really like the new MacBook Pro. I'm still adjusted with how low I have to rest my thumb to have "button mode" enabled, but that is a minor gripe. It was really ticking me off the other night when I was writing some code in eclipse, though.

Since I have an LLC, am a software developer, and am in the industry of making software, would it be reasonable to deduct the cost of an Xbox 360 or a PS3 from my taxes? That Xbox 360 arcade allows homebrew games, right? I could be doing "research".

[Partial]

Should I be concerned that I received my printer rebate 2 weeks ago but haven't heard anything about the iPod rebate?

When filling out the form, it said filling it out once would take care of both rebates.

I have received an email from promotions@apple.com telling me my check is on the way for 100 bucks (which I received), but it had no mention of the iPod rebate check.

Should I call in and find out what the deal is? I'm going to be irate if I'm screwed because I already sold the iPod, but I do have a receipt.

[Swox]

I'd definitely call and find out. We got stiffed for a rebate a few years ago.