This year I’m working as an independent contractor and I’ll be given a 1099 for tax purposes. I’m an umpire for an amateur baseball association. I am absolutely required to have internet access and a cell phone.

I did not have a personal cell phone before I started with this association. Can I deduct the full cost of a cell phone if it is used only for business purposes?

I already have a personal computer and internet access at my house. However, now that it is required for a job, can I deduct the cost of the internet service? What if I buy a new computer, is that deductible as long as I keep the old computer for my personal use?

Note: I do not intend to take the home office deduction because I do not have any one particular area of my house that is designated for business use only.

1) I bought a new car in 06 for personal use. Four months later (still in 06) I was involved in a wreck (not at fault).
Can I deduct…
A) The sales tax and other miscellaneous taxes on my car when I purchased it? (Conflicting info..one person says yes, another says no because it isn’t for business only)
B) Out-of-pocket expenses for rental fees? Or taxes only?
C) Standard depreciation?
D) Extra depreciation due to the wreck?
E) Deductible paid to body shop but not re-imbursement from insurance company not received by the end of 06.

2) Student loans. I was not a student in 2006, but was making payments on my student loans.
Can I claim..
A) Interest paid on student loans?
B) Interest paid but not claimed from previous tax years? How do I claim this if I can?
C) Hope credit or Lifetime Learning Credit?

In August my fiancee and I started working for an employer that pays us with a business account check but doesn’t take out any taxes. We know come tax season things are going to get confusing so we’re trying to get some things cleared up now.

I’m assuming the best way to file would be as an independent contractor since we work from home and because of the way he pays us.

My real question is what counts as deductions. We work from home but we both have offices that we could go to if we needed to. I’m at home about 99% of the time working and my fiancee about 80% of the time. Can we count a portion of our home as a deduction? And is this only if you own not if you rent?

Also we both use internet 100% of the time we are home on the job. We would have internet even if we weren’t working from home and when we’re not working we use it for personal use. Could we count a percentage of the internet as a deduction.

The same goes with cell phones. We both have PDA’s that we use to communicate with our boss and other business associates we must talk with. But we also have them for personal use. Percentage?

We also obviously use our own personal computers but they were purchased a few years ago and are used for personal use as well. Could we count a percentage of the depreciated value of them as a deduction.

I need to buy a new computer for personal and business use but I haven’t yet… Would it count?

My fiancee uses our car for business trips and is reimbursed by our employer for gas and mileage. The car is also used for personal use.

I know this is a lot of questions but we’re both clueless as to what we need to do. We’re probably going to pay someone to do our taxes at least this year. I’m quite worried about all this since I’ve heard that as an independent contractor you must pay back about 15% of your net pay… That’s… a lot.

Anyway, any help with this would be appreciated. I’m browsing trying to find some information on my own but I’m not really used to how they word things so I end up getting confused and frustrated.

Thanks in advance.

I work for a small business. I do all of my work (except client site visits) from my home office. However, since I also use my home office for personal use during non-working hours, I assume I cannot take the home office deduction (correct)?

Here is my question regarding mileage – I’m testing this using both TaxCut and TurboTax. In both cases, when I enter my mileage, it does not seem to reduce my tax owed. When I tell the program I want to use the home office deduction, then my mileage makes a difference. If I tell it not to do the home office deduction, then my entering mileage makes no difference. So, can I only deduct my mileage if I take the home office deduction? I haven’t read anything to indicate this, but the actions of the tax software programs leads me to believe that this is the case.

I don’t know if this matters, but I itemize my deductions (mostly due to mortgage interest & real estate taxes paid). I do not take the standard deduction.
Edit – I am a W2 employee. This is less than 2% of our joint AGI, so I guess that’s why it isn’t letting me take it. Thanks for the replies!

I bought a ,500 computer in 2004 for personal use. In 2006 I started a business and converted it to 75% business use. When filing for my small home business taxes, can I deduct the value of my computer? I have never claimed it as an asset before, and have not ever depreciated it. What should I deduct and depreciate?

Using Turbo Tax, and it has confused me. Thanks.

I am claiming a Standard Deduction because it is higher than itemized. I am still wondering if there is anyway I can write off the following two expenses in another place — if so, where? (I do not have a side business so I cannot include it there. Also, the unpaid employer expenses are not high enough to include them there.)
(1) License Plate Renewals for 2 Cars (Personal Use Only)
(2) State Physical Therapy License needed for work (unpaid by employer)

Thanks for your timely help!

I am a college student studying taxes.
In my book it briefly mentioned that you can claim a vehicle expenses deduction. I know that for business purposes there is usually a deduction or reimbursement from your employer, but is there a deduction for a car with personal use.(either mileage or gas expenses) Also as a student would it benefit me to depreciate my car? (Not sure if I can do that either?)

…I am a professional speaker on the topic? I advocate the use of these lifestyles, therapies, and products for health, wellness, and slowing the aging process. I definitely practice what I preach. I use/do everything I recommend in my speeches. I am in my mid-50s and look (and act) much younger.

I know that I am a walking promotion for my speaking business and that my appearance and behavior validates my expertise/opinions in the audience’s eyes. Therefore, I have to believe that my personal use of vitamins, supplements, and other alternative therapies should fall under the category of a business expense and be tax deductible. I am told by colleagues that this is "probably" true, but no one can give me any hard data to back up that claim.

If you agree (or disagree), can you give me the references I would need and could use if the tax deductions are ever challenged by the IRS.

Thank you for you help.

I have enough to itemize deductions, as opposed to taking the standard rate. The service is used for business and personal use.
ON Schedule C, is this an expense that can be listed?