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  #4  
Old 03-27-2005, 12:06 PM
Charlie K
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Default Re: business use of your home

Well, if you are getting a W-2 then it's a schedule A deduction and you
are out of luck.

  #3  
Old 03-26-2005, 12:28 PM
Endangered Bucket Farmer
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Default Re: business use of your home

In article
<1111795603.471233.35740[at]f14g2000cwb.googlegroups.com> ,
netcomm888[at]yahoo.com says...
- quote -

> Thanks Charlie. I looked at the Schedule C instruction. It seems
> Schedule C is for sole-propietor business owner or statutory employee.
> However, for this particular part-time job, i'm just a work-on-demand
> employee. The W-2 from this job does hold federal, state, medicare,
> social security taxes. This part-time job is nothing related to goods
> or merchandise. It's all about computer information processing and i
> strictly work from my home.



Red flag here.

You work on demand, without a schedule? And done in
your home?

Perhaps you are assigned a batch of work, and then
complete it at home? As long as you generally deliver
the completed "stuff" by a certain day?

Could be bad news.

Find out from the "employer" EXACTLY what is being
reported and deducted.

Many years ago, I actually had a US employer who
decided that, since I used my own car for work (all
day, every day), to report me as somehow magically SOME
Employee, and SOME Indepependant Contractor, at the
same time. The employer's stupid games and lack of
disclosure cost me money and hassle later.

Ask if you are getting ANY earnings planned for a
Form-1099 That says that the IRS is being told that
you are an Independant Contractor. And, as above, an
employer (in my case, officially appealed as such, but
uncooperative arsewipe with no money...) could be
playing games, such as to avoid their Social Insecurity
contribution.

OTOH, a home-office deduction is apparently a huge Red-
Flag saying, "Please Audit Me - I Like To Scam
Deductions," even if you are totally legit (they won't
know that until their proctoscopic exam of you confirms
so...)

Been there, done that, brought my own K-Y. I was cool,
but I am hoping that I went to the bottom of the
hassle-list for a few years.

If you have ANY uncertainty about deducting your home
office, or car, or travel, etc, etc, call the tax
authoriTAH, and request their official guidebook on the
issue.

If you are ever call IRS collections, then ASSume that
the dork on the other end of the phone is just a
hostile suspect. Really. I once had one of their
drones say that the, "Both-Employee-And-Independant-
Contractor" scam was legit.


--
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http://www.cardreport.com/
Credit Tools, Reference, and Forum

  #2  
Old 03-26-2005, 09:18 AM
netcomm888@yahoo.com
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Posts: n/a
Default Re: business use of your home

Thanks Charlie. I looked at the Schedule C instruction. It seems
Schedule C is for sole-propietor business owner or statutory employee.
However, for this particular part-time job, i'm just a work-on-demand
employee. The W-2 from this job does hold federal, state, medicare,
social security taxes. This part-time job is nothing related to goods
or merchandise. It's all about computer information processing and i
strictly work from my home.

  #1  
Old 03-25-2005, 10:56 PM
zxcvbob
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Posts: n/a
Default Re: business use of your home

Charlie K wrote:
- quote -

> Go back to the IRS pub and read the example for schedule C. That's
> where you report the income and expenses.



I started to reply basicly the same thing, but then I reread the
original message and got the impression that OP is somebody elses
employee (gets a W2) rather than a contractor whose pay is reported on a
1099-MISC. So I don't think the schedule C applies.

Best regards,
Bob

 
Old 03-25-2005, 08:57 PM
Charlie K
Guest
 
Posts: n/a
Default Re: business use of your home

Go back to the IRS pub and read the example for schedule C. That's
where you report the income and expenses.

  #-1  
Old 03-25-2005, 12:29 PM
netcomm888@yahoo.com
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Posts: n/a
Default business use of your home

I am working two jobs. One is full time, making X amount of money. And
the other is part-time, making Y amount of money. Y is much less than
X, less than a quarter of X. For the part-time job, i can only work
from home, because that employer does not provide office space for me.

Based on IRS publication 587, I can file this expense for the business
use of my home, into schedule A. There is a worksheet on page24 of the
publication.

However, where should I put that expense onto schedule A? Shall I put
down to "Job Expenses and Most Other Miscellaneous Deductions" section?
If so, there is this 2% of AGI restriction, which eventually makes me
unable to itemize that expense. And clearly, majority of my AGI doesn't
come from this part-time job.

 

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