Hello! I have questions about office equipment depreciation and charity donations. Thanks in advance for your help!
I have heard that one can deduct depreciation for items such as personal computers, office furniture, etc. for the percentage of time spent on tax preparation
and investments. My questions are as follows:
--Is this true, and if so, what are the limits on what can be depreciated (furniture and electronics? electricity? internet connection? home office space?). And, how can you keep records to satisfactorily indicate the percentage of times spent on such tasks. Literally logging everything I do in my home office (to get time spent on personal vs. time spend on taxes/investments) will be inordinately burdensome, as it is quite variable day-to-day. Is there an acceptable heuristic?
--Can I similarly depreciate such things for business use, when I am an employee who does not qualify for the home office deduction
(not my primary place of work). For example, if I use my office equipment for business purposes 10% of the time, can I depreciate 10% of the equipment (subject to the floor on out of pocket employee expenses)?
On a different note, I am moving and donating a ton to charity -- thousands of dollars worth of good condition household items and furniture. I don't want to deal with the hassle of getting anything appraised or getting excess documentation. If I donate my belongings in batches totally under $500 each, will I be ok with 1 receipt for each $500 batch (just a plain receipt from Goodwill or similar places where they don't itemize your donations) up to a grand total of $5000 (so, 10 separate batches) without needed more extensive documentation? How do I prove what items I donated if the IRS questions me?