RE: Buying software oneself in order to learn it

Subject: RE: Buying software oneself in order to learn it
From: "Steve Arrants" <stephena -at- compbear -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Mon, 17 Dec 2001 15:25:46 -0800


Win Day writes:
> If you're a full-time employee, though, I don't think you'd
> qualify. Don't
> you have to be an independent contractor to qualify for the
> tax break in
> Canada?
>

In the US, too. And there are some weird, complicated laws about
depreciating the cost of software. Like, unless the software becomes
useless after one year (tax preparation software) you've got to do a
three-year depreciation/amortization. But the IRS rules are so vague and
contradictory that you could also deduct the cost as a business expense
because it would be too complicated to use a three-year depreciation due
to what my accountant calls the 'de minimus' rule.

Anyway, I've never been challenged on it. On second thought...take what
I say with a big box of Morton's Salt--I'm not an accountant.

BTW -- the IRS has a free CD for small business/indep. contractors chock
full of forms and publications that you can order at
http://www.irs.gov/bus_info/sm_bus/smbus-cd.html It also includes an
updating service whenever they change regs and forms.

Steve arrants

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Re: Buying software oneself in order to learn it: From: Win Day

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