Re: [SLUG] tax, damn them

[DaZZa <dazza@nospam.zip.com.au>]

On Thu, 1 Jun 2000, Terry Collins wrote:

> > They will. Buy a new computer now, and then it's a total tax deduction -
> > provided you buy it before june 30.
> 
> I understand that this means it is an expense for this year, rather
> than being an asset to be depreciated over a number of years (2+)

Yup. That about sums it up.

> > Mind you, a tax _deduction_ doesn't cover the cost of the machine - at
> > beast it half covers it - but it's better than nothing.
> 
> A tax deduction means that it is a business expenses that can be taken
> before you arrive at the figure you pay tax on, rather than after
> paying tax. E.G. business use of a vehicle is tax deductable, but
> using the train to visit customers is not tax deductable (according to
> my accountant).

Yeah, but my point is that the deduction only saves you the tax you
_would_ have paid on the amount of money spent - which is, at best, 48%,
and at worst 30 odd percent.

DaZZa

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