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Tax Implications of Buying an iPod as a Gift

In summary, the sales tax rate for purchasing an iPod as a gift can vary from 0% to over 10% depending on the state and local tax laws. When buying an iPod as a gift online, you will most likely still have to pay sales tax due to the "Internet Sales Tax" implemented by many states. Purchasing an iPod as a gift is not tax-deductible, but you may be able to claim a deduction if giving it to a charitable organization. There are no specific tax benefits for buying an iPod as a gift for a family member, but if given to a dependent child, you may be able to claim them on your tax return. Givers do not have to report the gift of an iPod on their
wadesgirl
Gold Member
11,412
If I buy an Ipod, can I write it off if I plan on downloading training material on it?

Could I still write it off if I get it as a gift? How would that work?
 
You can't write off a gift, unless it's from DH and it was paid for with household money.You can probably write off the cost of one if you use it for training recordings.
 
You can not write anything off that you did not purchase in the first place.

You could write off the percentage of an iPod's purchase price commensurate with the percentage of time it is used to listen to training materials on. Generally, it would be recommended to have one that is used exclusively for work purposes.

I know with computers you start having problems with writing it off if it is also used for family purposes.

So I'd keep very good records of the amount of time the iPod is used for work vs pleasure purposes. Or I'd have two separate iPods, so you can point to the one used only for work and the other used only for home.
 

1. What is the sales tax rate for purchasing an iPod as a gift?

The sales tax rate for purchasing an iPod as a gift varies depending on the state and local tax laws. It can range from 0% in states with no sales tax to over 10% in some areas.

2. Do I have to pay sales tax if I am buying an iPod as a gift online?

Yes, in most cases, you will still have to pay sales tax when buying an iPod as a gift online. This is because many states have implemented an "Internet Sales Tax" that requires online retailers to charge sales tax on purchases made by customers in that state.

3. Can I claim a tax deduction for buying an iPod as a gift?

No, purchasing an iPod as a gift is not considered a tax-deductible expense. However, if you are giving the iPod as a gift to a charitable organization, you may be able to claim a tax deduction for the value of the gift.

4. Are there any tax benefits for buying an iPod as a gift for a family member?

No, there are no specific tax benefits for buying an iPod as a gift for a family member. However, if you are giving the iPod as a gift to a dependent child, you may be able to claim them as a dependent on your tax return, which could result in tax benefits for you.

5. Do I have to report the gift of an iPod on my taxes?

No, you do not have to report the gift of an iPod on your taxes. The person who receives the gift may have to report it if the value of the gift exceeds a certain amount, but as the giver, you do not have to report it on your taxes.

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