Tax question about deductions for an IT professional

[ninju D]

I'm curious if I can claim deductions of the cost of computer components or even a whole computer off my taxes. I am currently employed as a Network Admin, but this would not be primarily used for work. I am thinking if it was possible, it could be some kind of professional skills development purchase? Any ideas/advice is welcome.

 

[Dead of Knight]

http://blog.oregonlive.com/taxes/2009/05/can_i_write_off_professional_d.html

That doesn't really answer your specific question though. Would using a computer considered to be "education"? If you're not taking a class or something, it'd be harder to prove you're using it for professional development. How much of the computer would be for personal use (ie not for development, but for leisure, etc), as well? If it's mainly for personal use, then you probably can't deduct it.

Also relevant: http://www.irs.gov/publications/p529/ar02.html#d0e865

You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests.

*

It maintains or improves skills required in your present work.
*

It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer.

You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education:

*

Is needed to meet the minimum educational requirements to qualify you in your trade or business, or
*

Is part of a program of study that will lead to qualifying you in a new trade or business.

If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs.

I'm wondering if a computer counts as "supplies"?

Depreciation on Computers

You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is:

*

For the convenience of your employer, and
*

Required as a condition of your employment.

For tax years beginning after 2009, cellular telephones and similar telecommunications equipment have been removed from the definition of listed property.
For the convenience of your employer. This means that your use of the computer is for a substantial business reason of your employer. You must consider all facts in making this determination. Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer.

Required as a condition of your employment. This means that you cannot properly perform your duties without the computer. Whether you can properly perform your duties without it depends on all the facts and circumstances. It is not necessary that your employer explicitly requires you to use your computer. But neither is it enough that your employer merely states that your use of the item is a condition of your employment.

Your computer definitely doesn't qualify for this.

Also, remember if it qualifies, it must meet the 2% AGI floor to even be deducted at all. Also, keep in mind you will be more likely to get audited if you have deductions like this.

I am not an expert in personal deductions or even personal income tax returns in general. I would definitely consult a local tax professional if you want to go further with this. If I had to rely on my judgment though, it would be pretty iffy.

Edit: Another article that is slightly more closely related to your issue:
http://www.fool.com/personal-finance/taxes/2004/12/17/tax-deductions-for-home-pcs.aspx
Just put in a fake email address like I did to "register" to see the whole thing.

 

[nasum]

In general, no.
If you buy the PC to use for a VPN type of purpose with your current employer then you can deduct the purchase. Rather you can ammortize it and reduce your cost on the PC. Then again, 98% of employers will just purchase and give you a computer that is their property to use if you need to administrate anything during non-office hours.

Write-offs for ongoing professional enhancement (skills training and the like) needs to be from an accredited source. For example, you can't write-off your purchases at McDonalds if you're a chef because you wanted to figure out the secret sauce. You can however write-off culinary classes.

 

[Dead of Knight]

[quote name='nasum']In general, no.
If you buy the PC to use for a VPN type of purpose with your current employer then you can deduct the purchase. Rather you can ammortize it and reduce your cost on the PC. Then again, 98% of employers will just purchase and give you a computer that is their property to use if you need to administrate anything during non-office hours.

Write-offs for ongoing professional enhancement (skills training and the like) needs to be from an accredited source. For example, you can't write-off your purchases at McDonalds if you're a chef because you wanted to figure out the secret sauce. You can however write-off culinary classes.[/QUOTE]

Sounds about right. I didn't want to give a definitive answer since my knowledge is mostly about NPOs, but this is what I was thinking.

 

[nasum]

doing my best to remove as much jargon as possible.