lemonyelow1 - 3:20 pm on Oct 11, 2004 (gmt 0)

To the last poster -- I know it's a longish thread, but there ARE some disadvantages to coming in at the end & not reading back....

The question is still VERY much open -- my instincts (supported, FWIW, by the majority of posters here) is that D.N. purchases CAN be capitalized.

However, it's even more likely, in my opinion, that they CAN be expenses.... No contradiction -- the tax code often gives one choices; sometimes, circumstances (like what one does for a living) make some choices either more attractive or.... not actually legal, or at least possibly requiring a defense at some future date.... There are lots of ways of "making income go away" near year-end, of course -- some make better business sense than others, but I *DO* believe that many people could generate deductible expenses by registering DN's.... Caution, it's almost certain that doing that would result in any subsequent profitable sales being treated as ordinary income, so this "tactic" is "income shifting" not sheltering!

Having said all that, I, too, am not a lawyer, and you do well to get professional advice if there's either significant money involved, you HATE hassles or both.