Deduct A/V Gear From Your Taxes? Whaaaaaaawesome!
Sound and Vision has done their homework and finagled five tips that will help you get Uncle Sam to pony up for your home theater gear. Now, I’m no expert on these matters, but the advice seems to be viable—although making it happen is going to require a bit of work on your part.
AU: Not specifically relevant for Australians, but might be worth a read if you can make it work for you.
First and foremost you will need to get involved in a business that will qualify you for these types of deductions. Obviously that is easier said than done, and there is definitely a grey area with regard to what jobs will do the trick. Writing and music production were mentioned, but again, there will be other qualifying factors to contend with. But after that it is all sort of, kind of cake baby! Hit the link for the rest of the tips. [Sound and Vision]
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Comments (AU Comments | US Comments)
Australians can already get a laptop and mobile phone (even an iPod, arguably) free every year through the tax system. Firstly, salary sacrifice allows Australian taxpayers to buy a laptop with a discount equal to the top marginal rate of tax that they pay. They can then further depreciate the FULL PRICE (pre-tax $$$) of the laptop or phone over three years. In effect, taking into account the opportuinity cost of the money a free laptop and phone every year. And it is completely legal. If you aren’t using this system you have rocks in your head and should fire your accountant. Oh, yeah, companies love it because it reduces their tax — they pay payroll tax on only the cash component of their payroll, not those emoluments taken in kind like this.
I would check that you can depreciate the asset after you salary sacrafice, as that is what I believe the ATO calls ‘double dipping’ you would be claiming two benefits off the one item.