I'm with Tony on the house stuff. I was advised against it. Now for
hardware, you can do it two ways, you can write off the purchase price,
or you can write off the depreciated.

I write off the purchase price as a loss and take that as a capital loss
against my personal taxes. Usually in 3 years the stuff I buy (Camera
Equipment) either doesn't depreciate (Lenses) or I sell them by that
point (Camera Body)

-----Original Message-----
From: Tony [mailto:[EMAIL PROTECTED] 
>
> As for expenses, keep receipts.  Also keep a log of milage and fuel
when meeting with clients or picking materials, software, hardware, etc.
Estimate what percentage of your square footage is used for your coding,
etc. and estimate what percentage of the day it is used for that purpose
and use that for deducting part of your mortgage/rent.
>
> i.e. If you use an office that is 12% of the total square footage for
coding, but use that same office for 3 hours of gaming every night you
can deduct 7/8th (21/24) of the 12% of your mortgage/rent.
>
> Track every expense, including training.  In some circumstances, your
lunches may be deductable.  Software you purchased for this job is also
deductable.  Hardware needs to be depreciated.  You can use a 3 to 5
year depreciation schedule on this.  Three years gives you the best
results in most cases.
>
> Get a good tax accountant to help with your planning this year and
your return next year.
>



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