How to deduct your home theater from next year's taxes
by Apr 23rd 2008 4:30PM
I didn't know you could attempt to deduct THX from your TAX return but the good folks at Sound and Vision Magazine have covered many of the issues related to deducting home theater equipment. As an amateur audiophile and gadget addict, this guide is of particular interest to me, however its usefulness may be questionable for the majority of individuals. If you are up to the challenge, the rewards of home theater deduction may be worth the hassle for anyone ponying up for 7.1-surround and a screen larger than 50 inches.
This process's worth to an average Joe is questionable due to the many requirements a deduction of this type requires. First and foremost you'll need to set up a business for which your home theater is needed. If you can manage to do that, you also need to make sure your home theater gets more than 50% of its use for work related activities. On the upside, if you meet all of the requirements -- including generating income from your business -- you can go all out claiming anything related to your haven of sound and video, even furniture, so long as it all meets the 50% rule.
If you need more help determining if your "movie quotes on demand" service is a business or just a hobby to annoy those around you, check a recent post by Tracy Coenen, Is it a hobby or a business. I wish I could start claiming items I purchase for business use but in all honesty I can't imagine anything I do use in pursuit of blogging being used more than 50% for business, if you can, more power to you. Just don't point your finger at me if the IRS comes a knockin'.
