Computer Equipment Purchase Taxability Matrix

In This Section

^{The following details the taxability matrix and criteria associated for computer equipment purchases.}
^{Type of individual that purchase is for…}	^{Funding Source}	^{Is the computer equipment required for course/class/job?}	^{Is it taxable to the individual?}	^{Who is required to report taxable benefit?}	^{Who owns the property?}
^{Fellow/Resident/Trainee (Fellowship Recipients)}	^{Fellowship/scholarship funds}	^Yes	^No^{(per Reg. 1.117-6(c)(6)) see below}	^{Not applicable}	^{Fellow/Resident/Trainee}
	^{Fellowship/scholarship funds}	^No	^Yes^{(per Reg. 1.117-6(c)(6)) see below}	^{Fellow/Trainee}	^{Fellow/Resident/Trainee}
	^{Non-fellowship/scholarship funds}	^Yes	^{The University does}^not^{allow departments to purchase computer equipment that will be retained by the fellowship recipient with non-fellowship/scholarship funds. All purchases are property of the University, to be retained by the University.}		^University
^{Employee (All Other)}	^{Any funds}	^Yes	^{The University does not allow departments to purchase computer equipment that will be retained by the employee. All purchases are property of the University, to be retained by the University & not taxable to the employee.}		^University

Reg. 1.117-6(c)(6) Example 1

On September 1, 1987, A receives a scholarship from University U for academic year 1987-1988. A is enrolled in a writing course at U. Suggested supplies for the writing course in which A is enrolled include a word processor, but students in the course are not required to obtain a word processor. Any amount used for suggested supplies is not an amount used for qualified tuition and related expenses for purposes of this section. Thus, A may not include the cost of a word processor in determining the amount received by A as a qualified scholarship.