IANAA (I am not an accountant), but...

In general you can write off business expenses. There are two main
categories:

1: Normal expenses - these are generally for things that are consumed within
a year -- for example magazine subscriptions or internet service bills.

2: Depreciation on capital expenditures. This handles things like computers
and software. There are two basic ways you can handle this expense:

A: Normal (or accelerated) depreciation. According to an IRS formula you can
deduct a certain percentage of your cost (basis) each year. The percentages
and number of years involved vary based on the particular type of property.

B: Section 179 deduction. For some property types you can deduct the entire
cost the first year the property is placed in service.

FYI: Computer hardware is eligible fo the Section 179 deduction (if used 50%
or more for business), but software must be depreciated over several years.

If you sell something you have take depreciation or a section 179 deduction
on and you get more for it than its 'book value', you have to recognize
income for the difference.

I do my own taxes because the one time I hired a pro he botched it. (Of
course the old adage that a may the represents himself has a fool for a
lawyer may also apply to accounting here).

Bob Ammerman
RAm Systems

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