Irrationally seeking tax deductions

posted by Jeff | Sunday, November 14, 2010, 11:21 PM | comments: 1

You know what's really stupid? This time of year, I tend to look for things to buy that are business related so I can score a deduction on my taxes. Last year, I bought my desktop computer that way. It completely doesn't make sense, and I know this. Sure, if I buy some piece of equipment for $1,000, I then pay $200-something less toward taxes. But that still puts me at a net loss of $800, except that I have some piece of hardware that I now own. Totally irrational.

The business did much better than last year, thanks in part to the amazing rebound of the advertising market. That has me all screwed up, because I didn't do any tax estimates this year because generally I'm covered with the various standard deductions and mortgage payments and what not. So combined with the taxes on the short sale, I'm already going to be writing a five-digit check to the feds, and that blows.

One thing that is nice this year... no state or municipal income tax. This year, that saves me something like $6k. Suck it, Ohio and Brunswick!


Comments

GregLeg

November 15, 2010, 6:00 AM #

Of course, you're going to lose the Federal deduction on those local taxes ;)


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