Tax writeoff for boxen?

[AgrFan]

If I give a monetary donation to a university, I can deduct it on my taxes. Wouldn't it be great if Stanford could provide a receipt for new dedicated boxen that could be used as a tax writeoff?

 

[digital_exhaust]

Yes, it would.... particularly with all the new/borged boxen we've had around here lately, but I don't see it happening as there is no real way to prove that any of your machines are dedicated folders...at least none that I can think of...

It sure would be nice though..

 

[alan2308]

It's a nice idea, but nobody has found a way to make it work so far. Its been argued dozens of times at the FCF and most team's forums. But if you can figure something out, dozens if not hundreds of folders everywhere would love to hear about it.

 

[AgrFan]

I was thinking the same thing. How do you prove a machine is dedicated. There would need to be some kind of link between a machine's configuration and the number of points generated during a specific timeframe. Stanford would need to control this and they probably wouldn't want to get into this business.

 

[BillR]

Ok, here goes……………

The situation is not entirely impossible. First, pick a business name for your new company. Apply go your local State Tax office for a Sales Tax license for a retail business. You do not need a store front to go into business for yourself. Because you are creating a specialized business most states allow for a “Hobby” type business.

Keep it reasonable; say 4 to 6 Demo computers specifically built for distrusting computing use and scientific calculation.

Dedicate or allocate a certain square footage allowance in your home for your business.

For credibility you might want to advertise on your own website.

Now, by law in most states and federally you are allowed to deduct the following from your total home expenses.

The power consumed by your computers, the lights and power for your space in the home as well as a percentage of heat and cooling expense for your allocated area and you can depreciate your computers probably over a three year period.

In case you missed the obvious, business wise this will be a money losing proposition. The good part is there is absolutely no law against being a poor business person. The losses however can be charged back to your home expenses and since you made no money on the machines you have no tax to pay there either so the whole thing becomes a deduction.

If you are smart you will buy you hardware with your tax number BUT pay the sales tax on it at time of purchase.

You will have to file quarterly tax reports to the state and possibly the Fed.

Expect to be audited, just keep all your paper work and track expenses carefully so you are covered there.

Yes, it’s more work then most are willing to involve themselves, but run it by your lawyer and accountant, it is legal in most states.

I repeat, before taking this path check with both your lawyer and accountant for the details.

Indemnification
You agree to indemnify and hold ___ME_____ my officers, subsidiaries, parents, affiliates, successors, assigns, directors, officers, agents, service providers, suppliers and employees, harmless from any claim or demand, including reasonable attorney fees and court costs, made by any third party due to, relating to, or arising out of Content you submit, post or make available through the Site, your use of the Site, your violation of the Terms, your breach of any of the representations and warranties herein, or your violation of any rights of others.

Luck

 

[Xilikon]

Yes, this can be doable. Same if you wanted to get deducted for your own hobby and wanted to pay some of the car expenses (car being used to do technical support in customers houses)... just be creative and know the laws then you will be able to write off the expenses.