- Days left

How to deduct your home theater from next year's taxes

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'.

Increase your money and finance knowledge from home

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »

Understanding Credit Scores

Credit scores matter -- learn how to improve your score.

View Course »

TurboTax Articles

Know The Key Dates For Health Care Reform

"Open enrollment periods for the health insurance marketplace under the Affordable Care Act are limited" says Mac Schneider, a retired certified public accountant from Albion, Michigan. ?Avoiding tax penalties requires awareness of important dates that may vary year-to-year.? As well as key dates, there are time cycles and coverage gap allowances important to health insurance coverage under provisions of health care reform.

Deducting Mortgage Interest FAQs

If you're a homeowner, you probably qualify for a deduction on your home mortgage interest. The tax deduction also applies if you pay interest on a condominium, cooperative, mobile home, boat or recreational vehicle used as a residence.

What Extra Tax Deductions Should I Make Sure To Take?

The federal government offers tax deductions and credits to reduce taxable income under certain circumstances. There are several that are often overlooked, including deductions for job hunting, caregiver expenses for dependents and children while you work, a credit to reduce taxes for moderate- to low-income earners and the premium tax credit associated with the Affordable Care Act. TurboTax can help determine if you qualify for these credits and deductions.

Add a Comment

*0 / 3000 Character Maximum