08-22-2007, 10:22 AM
Seantn1k Wrote:Isn't the deduction for the computer only a percentage of the total purchase price?
By percentage, you might be thinking of depleting the asset over a given time period. Since 1986 ACRS has been the standard scheduling method. In other words, you depreciate the asset a given percentage each year.
The other percentage that comes to mind would be that since the depreciation lowers your taxable income, you only save marginally. If the computer was $1,000 and your marginal combined tax rate was 35%, your tax bill would only be decreased by $350, not $1,000.
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Aaron
"Early to bed and early to rise probably indicates unskilled labor." - John Ciardi
Aaron
"Early to bed and early to rise probably indicates unskilled labor." - John Ciardi