sheesh3[at]yahoo.com wrote:
- quote -

Thanks Bex,

I'm going to finish my tax return tonight.

Take care,

Pat

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patrizio[at]canada.com (Patrick) wrote:

- quote -

For a Schedule C deduction you do not need a home office.
For a Schedule A you do. I mistakenly read this as all W2
work, and didn't see you get a 1099 at first.

Sorry,

bex

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- quote -

This may be a duplicate posting:

Thanks Frank for your comments. I will reallocate my DSL expenses
between personal and business usage. I will also put my mileage on a
spreadsheet.

Thanks,

Pat

P.S. I don't feel like I have retired... but my income has retired!

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- quote -

Thanks Bob, for clearing that up (and for the link).

Pat

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- quote -

Thanks to all that replied! Sorry for my delayed reply.

I am puzzled by your comments, Bex,

Why can I not claim the mileage?

I went to the company to make my proposal, etc. but I did
all the work at home. I do commute to the college but that
is in a totally different direction. It never occurred to me
to claim a home office deduction for such a small job. Does
one really have to have a home office deduction in order to
claim the mileage?

Thanks,

Pat

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- quote -

These miles will only be deductible if you are claiming a
home-office deduction, otherwise they are commuting miles
and are non-deductible.

bex

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- quote -

The 2% of AGI applies to miscellaneous itemized deductions
on Schedule A. It does not apply to business expenses that
you deduct on Schedule C.

On Schedule A the 2% limitation is calculated on lines 24 -
26, and it is on page A-5 of the instructions. On the IRS
web site you can find it in Tax Topic 508 at this link:
http://www.irs.gov/taxtopics/tc508.html

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- quote -

Sounds like you are not. Welcome to schedule C land.

- quote -

Sales income.

- quote -

Auto expenses.

- quote -

Allocate between business and personal based on your
estimate of the usage split.

- quote -

I put it under utilities. Allocate between business and
personal based on your estimate of the usage split. I am
not sure charging the difference is relevant unless you had
DSL removed after the job.

- quote -

Do you have a log of the mileage, the date, the destination
and the mileage. I keep mine in an excel spreadsheet.

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jsmith9543[at]aol.com (JSmith9543) wrote:

- quote -

Thanks for the information!

2% of AGI? Do you know where that requirement is found? I
looked for it on the IRS site but couldn't find it.

Have a great weekend,

Pat

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- quote -

They are not miscellaneous deductions. They are business
expenses that he is subtracting from his business income on
Schedule C. Business expenses are not subject to the 2% AGI
threshold.

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these seems like valid deductions, but i believe you must
have MORE than 2% of your AGI of miscellaneous deductions
before they count?

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Can I deduct part of DSL Fee as a business expense?

Greetings,

I am retired. I have a part time job teaching Web Design as
an adjunct instructor. I have never been self employed.

On 8/07/2003, I enter into an agreement with X Company to
create a small web site for $500.00.

I used my car (our only car) to travel to the place of
business and discuss the proposed agreement, etc. (I went
four times.) The round trip distance to the place of
business is 22 miles according to MapQuest (It's actually a
little longer but I guess I have to use MapQuest.). I
presume I can deduct $31.68 (22 miles x 4 x .36).

At the time, I had a dial up connection (access4less at 5.95
a month). Since X Company wanted to be able to talk to me by
phone while showing me their current web site, discuss
proposed changes, make changes, etc., I subscribed to DSL at
$29.95 a month.

I worked on the site for two months and received my $500.00
payment on 10/03/2003.

Here is my question: For August and September, can I deduct
the whole $29.95 or, at least, the difference between what I
was paying for my dial- up connection and the DSL
connection? Can I deduct $48.00 ($24 x 2) as an expense?
Where would I claim it as an expense, office supplies?

One more question: On Schedule C, for the car expenses, the
form asks if I have evidence to support my expenses and if I
have a written record. If I write something on a sheet of
paper-–the days I went to the business-- is that considered
evidence, is it considered a written record? Does it make
any difference if I answer "no" to those questions?

Thanks,

Pat

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