Deducting Home Lab Equipment

royalroyal Member Posts: 3,352 ■■■■□□□□□□
Just curious if anybody has ever tried deducting any lab equipment for their home? For example, I have used my home server to do virtual POCs to clients before. I've been debating it but I know it may be a red flag for IRS.
“For success, attitude is equally as important as ability.” - Harry F. Banks

Comments

  • blargoeblargoe Self-Described Huguenot NC, USAMember Posts: 4,174 ■■■■■■■■■□
    I've been doing some work on the side for a while now for a small business here in town and since they've been giving me a 1099, I have to file that as self-employment. As such, I do deduct some things from my taxes like machines, exam fees, or books that my employer doesn't reimburse me for. I don't do very much of it though, I'm afraid to push it particularly if it's something I get personal use from.
    IT guy since 12/00

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  • royalroyal Member Posts: 3,352 ■■■■□□□□□□
    The sole purpose of this machine is to build labs that I want to educate myself for in regards to work. Everything else I use my personal machine. That's why I've been debating it.
    “For success, attitude is equally as important as ability.” - Harry F. Banks
  • kalebkspkalebksp Member Posts: 1,033 ■■■■■□□□□□
    I think you should be able to deduct it as educational expenses (Tax Topics - Topic 513 Educational Expenses). Your best bet would be to ask an accountant.
  • royalroyal Member Posts: 3,352 ■■■■□□□□□□
    kalebksp wrote: »
    I think you should be able to deduct it as educational expenses (Tax Topics - Topic 513 Educational Expenses).

    Perfect. Just reading that answers my question. It states I can expense work related educational expenses if it improves or maintains job performance. Which it indeed does. Thanks!
    “For success, attitude is equally as important as ability.” - Harry F. Banks
  • HeroPsychoHeroPsycho Inactive Imported Users Posts: 1,940
    Yep, I've done it, too. No problems, and my financial adviser said it's fine.
    Good luck to all!
  • eMeSeMeS Member Posts: 1,875
    Taxes can get very complicated very quickly, as you all know. Seek the advice of a CPA, however, I say this not because there is a question as to whether or not the home lab equipment is deductible (my unqualified opinion is that it is). Rather, the majority of all taxpayers do not properly track and take all allowable deductions, and therefore leave money on the table. By doing this most people choose to pay more tax than they are legally obligated to.

    If it is illegal to may less tax than one is obligated to, why is it not also illegal to overpay taxes?

    I learned from my CPA a different approach. I automatically assume that *everything* is in some way, shape, or form deductible until proven otherwise.

    Please note, this does not mean that I deduct every expense. It does mean that every expense is considered and if it is clearly 100% personal it's easy to reject as a deductible expense.

    I have only been audited once in my life, and it had nothing to do with any claimed deduction. Instead, it was because of a 1099-S with a different amount than the amount reported to the IRS, resulting in no penalty/problem for me. Audits are rare, and it's near impossible for us laymen to guess at what might trigger one...CPAs are much better with that.

    Guess what else you can probably deduct....do you have that home lab equipment stored somewhere in your house???? Just a thought...

    MS
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