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Itemized Deductions Schedule-A


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Old 12-21-2014, 07:57 PM
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Question Can I deduct a purchase in Dec 2014 from my 2015 tax return instead of my 2014 return?

Hey, I can't seem to find an answer to this anywhere.

I'm currently working full time but am going to be laid off in March, so I'm trying to figure out plans to start freelancing. I need to buy a new computer and would like to use the deduction on my 2015 taxes as that will be more beneficial in the long run, as I only have a W-4 this year and will have 1099s next year.

Can I take advantage of current holiday discounts and purchase a computer now in 2014 but use the deduction on my 2015 taxes? Or do I need to wait until January (10 days away but without the discounts that are available now) in order to do that?

Ideally I can buy in December 2014 with the discounts and use the purchase as a deduction on my 2015 tax return - but is that possible? And if it is, would it be complicated?

I also may be registering an LLC next year, which would make the computer owned by the LLC. How would this complicate things?

Thanks a million, I have no idea with this stuff! :-)



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Old 12-23-2014, 05:13 AM
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Can I deduct a purchase in Dec 2014 from my 2015 tax return instead of my 2014 return? ====>>>>>basically no ;however, you can’t just lump overlooked tax deductions in with this year’s return.Generally speaking, you cannot deduct expenses from a previous year on this year’s tax return. You can only deduct expenses in the year that you paid them.Each return deals with its own year and your finances for each of those years needs to be kept separate. You can’t just lump deductions or income or anything else from a previous year in with this year’s tax information.



Hey, I can't seem to find an answer to this anywhere.

I'm currently working full time but am going to be laid off in March, so I'm trying to figure out plans to start freelancing. I need to buy a new computer and would like to use the deduction on my 2015 taxes as that will be more beneficial in the long run, as I only have a W-4 this year and will have 1099s next year.

Can I take advantage of current holiday discounts and purchase a computer now in 2014 but use the deduction on my 2015 taxes?=====>>>>>>>>as mentioned above. as a general rule, you can only deduct those expenses paid during the tax year. If you paid home mortgage interest in 2012, for example, you may not delay taking the deduction until you file your 2013 taxes. There are some exceptions. If you pay property taxes into an escrow account, for example, you may not deduct that payment. Instead, you deduct the actual payment from the escrow account to the tax collecting authority in the year the payment is made. In addition, if you pre-pay mortgage interest, you must allocate the deducted amount to the years for which the lender credits your interest payment.

Or do I need to wait until January (10 days away but without the discounts that are available now) in order to do that?==>>>>as mentioned above.you need to make a decision to choose if you need to wait until January for tax deduction or if you choose the discounts whichever is larger.

Ideally I can buy in December 2014 with the discounts and use the purchase as a deduction on my 2015 tax return - but is that possible? And if it is, would it be complicated?=========>>>>>>>>>>as mentioned above.

I also may be registering an LLC next year, which would make the computer owned by the LLC. How would this complicate things?========>>>>>>>> In order for the cost of a computer to be tax-deductible, the PC or notebook must be utilized for a primary business purpose by the llc.as you purchase the computer for use in your own business, there is no problem deducting the whole cost. Usually, you can deduct the entire cost in a single year instead of depreciating it over five years. Since you use the computer in your business more than 50% of the time, you can deduct the entire cost under a provision of the tax law called Section 179. Under Section 179, you can deduct in a single year the cost of tangible personal property (new or used) that you buy for your business, including computers, business equipment and machinery, and office furniture. If you use the computer for both business and personal purposes (such as playing computer games), your deduction is reduced by the percentage of your personal use. For example, if you use your computer 60% of the time for business and 40% of the time for personal use , you can deduct only 60% of the cost. If your computer cost $600 you could only depreciate $360.in the first year you can deduct $120;20%*$600 and so on. if you use your computer 40% of the time for business and 60% of the time for personal use (such as playing computer games), you can only depreciate 40% of the cost. If your computer cost $1,000 you could only depreciate $400.



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