College professor Thomas C. Cadwallader did historical research. Though no employer directive demanded he buy a computer, a court allowed a deduction for it. The judge said it was necessary to do his job.

Third grade teacher Ellen H. Bryant bought a computer because the school required her to prepare report cards on one. Though the school owned eight computers, it was difficult to find one available during working hours and dangerous to stay at school at night.

But the court didn't byte. The judge said she could have used one of those eight at school, other teachers did. Thus, she could properly perform her duties without a computer at home.

Hey, one court let Thomas C. Cadwallader have a deduction, why not me, she asked the judge. He responded, Cadwallader needed a computer to properly perform research involving massive amounts of data. And it was for his employee's convenience because the employer didn't have to buy one.

Three additional points to consider:

• Even if the teacher brought a note from school saying the computer was essential, she couldn't take the deduction.
  
• The properly perform work, requirement is generally not necessary for a deduction if you always keep your computer at the office.
  
• If you have only one computer at home, keep a record allocating time spent on business and personal, like games, recipes and a child's homework. If you use your computer 70 percent for business, your record book, and tax deduction, should reflect this.(more at Other Deductions)
  

THE MORAL: The IRS will delete your computer deduction if you don't satisfy the requirements and keep accurate records.

Released 2-25-02