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Tech you can expense: Get Uncle Sam to work for you.
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Laptops and handhelds 
Travel light with a superslim notebook and a handheld computer to get your work done anywhere--and play games or watch DVDs afterward.  
Cell and cordless phones 
You'll have to make calls for work, right? Write off your wireless.  
Hybrid cars 
If low emissions and fuel consumption don't sway you toward a hybrid, the tax incentives might.  
Camcorders and digital cameras 
Document your inventory, add video to your PowerPoint shows, and help make your child's first music video on the weekend.  
Networking gear and Internet services 
You'll need the Internet to get any work done. And at the end of the day, you can surf off the stress.  
MP3 players 
Document your business deals with an MP3 player that records voice, then after hours, listen to some tunes.  
GPS units 
Whether you're on a business trip or hiking with the family, it's good to know where you stand.  
Travel bags, software, and accessories 
All of your tech items require batteries, flash cards, cables, and transportation. Protect your gear with the right bag.  
TVs and projectors 
Work in advertising or video production? A big-screen TV or projector to view demo tapes and DVDs at home may be your ticket to a Super Bowl party next year.  
Digital video recorders 
Never miss another job-related TV show. Digitally record them with a personal video recorder, such as TiVo, then watch Days of Our Lives when you get home.  
Burners and hard drives 
Back up your PC and save large chunks of data, as well as the occasional music CD.  

7 simple rules for avoiding an IRS audit
Those in the know agree that these simple rules, although no magic elixir, should help you fly under the IRS's radar. And even if you are audited, all is not lost. Here's what the pros say.

  1. Don't get greedy
     If a $3,000 plasma TV is good enough, don't stretch for the $15,000 model. It'll raise eyebrows at the tax office.

  2. Split the difference
     If you're unsure about whether you should deduct the total cost of your purchase, allocate what you think is an equitable percentage of the deduction based on how much you use the product for work. "You'll have to eat part of the cost, but the government will help with the rest," explains Monaghan. "Fifty-fifty is reasonable."

  3. Have a scenario ready
    Even if it means writing up a usage plan for your technology in advance and filing it away, have your story ready beforehand in case the IRS calls you on it. Keeping a log of work-related use is also good.

  4. Document everything
    The IRS puts the burden of proof on the taxpayer, so make sure you have the receipts to prove what you paid. "Sometimes, having the documentation can be a silver bullet in a dispute with the IRS," says Marzen.

  5. Don't let the IRS bully you
    Remember, the audit rate is currently between 1 and 2 percent of all returns, so chances are that they'll never even notice you if you're discreet, low key, and honest. If you are audited, remember that deducting business expenses is legit.

  6. Don't push the limit
    If you're self-employed, your deductions should add up to about 15 to 20 percent of income, less if you have a day job. Go over those numbers, and the IRS is likely to look askance at your deductions.

  7. Above all, be honest
    Not sure if what you're doing is right or uncertain about a detail? Talk it all through with an experienced tax preparer. They know how to deduct expenses without setting off alarm bells at the IRS.



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