This is soooo off the record, but do you designers deduct almost everything you buy?
I ask because I figure I can deduct bags, shoes, pens, speakers, eyewear, luggage, toys, appliances–the whole lot because as a desiger I have to test the product and understand how to make it better. My accountant backed me up on this, but I still wonder if it’s kosher. I figure I can occassionaly deduct a shampoo bottle because of its’ shape…
Mind you I don’t regularly design all this stuff (especially shoes), but I do apply for positions where I would be (designing shoes), therefore buying and testing is for the good of my career development?? Therefore, deduct everything?
Never done any deductions, always Telefile. But, upon thinking about it, I’ve decided to deduct a bunch of stuff for next year that I honestly feel I use for design purposes. For one thing, my new computer (Pentium 5 baby) will certainly be deducted. Shoes…well, not sure about that. Maybe I can deduct my furniture because I can’t buy “normal” furniture. I have to go to those trendy stores and get some off-the-wall piece. As a designer, you MUST have stuff that’s different than the norm.
In all seriousness, I’ll probably just deduct the computer and software.
dont get much back. first freelancing i bought tons of books and mags. all design. all deductable. spent well over $1000. probably saved $30 deducting. didnt need half of them.
i deduct legit stuff. dont design shoes. dont deduct them. if i need shoes i buy them. rarely buy non project stuff. doesnt pay off. project stuff gets billed. but on rare occasion i will buy something for design ref only. and i’ll deduct. but i’m spending - not saving - money.
just cuz youre a designer dont mean everything you buy is tax deductible.
Yeah, you’re hanging a big “audit me” sign around your neck with that attitude. Forget it!
BTW: Is everyone aware of the tax loophole that supports writing off huge SUVs (over 2 tons) if you use it for business purposes? The law was written back when that only described Vans and delivery trucks! But today it covers many an urban-assult-vehicle… In some cases, the deduction will pay for the whole damn Denali (sorry, I couldn’t resist.)