Reddy asked:


I did part time telemarketing from home as a 1099 for 10 months this past year. My 1099 income is less than $8K. It required using my telephone (unlimited long distance) and using my internet. However, I obviously used my phone and internet for personal use as well. Can I still deduct a portion of this on my taxes? As far as a home office, I only dedicated a part of my den for business use (basicly, a desk with filing area that was used for business). It wasn’t a separate room, just a portion of a room. Since then, I no longer do this, and I have converted the entire den to an actual living area. I do not have pictures to prove that half of it was dedicated to business. This area was less than 90 sq feet out of 1052 foot house. Any advise on what I can do to reduce my 1099 income?

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DrShabazz asked:


My work is giving me the opportunity to work from home 1 or 2 days per week. To do that, I would need internet access and a home land-line.

I have a cell phone, so I wouldn’t need a land-line if it wasn’t for this opportunity.

As for internet access, my my apartment complex already has free WiFi in the lobby…so if it wasn’t for this opportunity, I wouldn’t necessarily need my own access. (although with my own access, I’d probably go ahead and get some personal use out of it, instead of going down to the lobby.)

So how do I write this off? I’ve searched for this question on this website, and found that I can write off a percentage based on business use vs. personal use….also it would have to be well documented. So what kind of documentation would be sufficient?
So to clarifiy:

If I get a land line, it would strictly be for business use. (because I already have a cell phone)

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rckpenguin asked:


I have been trying to get a stay at home job for 7 months now. I purchased a new computer, paid fees to guru.com, and got internet and phone installed for that purpose. We have also done many improvements to the home, which include the area I’m using to look for a job. I have tried to figure it all out from IRS.gov but it doesn’t make much sense to me. I have only done one project which paid $39 on 12/30/07. (for which I was considered an independent contractor) How should I claim this? Thanks in advance!

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contentforfoodies asked:


I’m a freelance writer and have a home based business/office. All of my work is submitted online. In other words, I cannot do my job without internet service. Can I deduct my internet expenses? If so, where do I enter that deduction?

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Kathy asked:


I work from home for a business and I use my computer and internet everyday. Well my computer is older and is starting to turn itself off and is basically dying on me and I think has a ton of viruses.We have tried fixing it but it just doesn’t have the memory capabilities I require for the business I work for.Anyways I am going to buy a new computer next month to make my job a little easier,so I was just wondering if I could claim that on my taxes.

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James A asked:


Hello,

I was thinking of ways in which to reduce my tax liability in future years. I currently max out my Roth IRA. I also have a personal investment account. In this account I make frequent trades and thus pay the regular income tax rate on my gains. Can the investment account be treated as a separate business? After all, there is definitely a profit-making motive.

If it was classified as a business, would I be able to deduct computer equipment, internet bills, home (office) depreciation, newsletter subscriptions, etc?

Thanks,

Jim

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