I went to Best Buy on December 31, 2006 and bought a computer, printer and some other computer peripherals. But, I paid by credit card..

I really need to write off this deduction this year, but, I claimed on my schedule C of my personal tax return that I was a Cash basis tax payer. Can I still write off this purchase??

Actually, you are in luck! You can write this computer purchase off in 2006, as it is deemed to be purchased in 2006 even though you have paid by credit card.

Technically it is not, but IRS has generally allowed this deduction to Cash basis taxpayer.

In short, you can write off the entire amount paid by credit subject to S179 rules and limitations.

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