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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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What can I write off personal contracted job in ca including

Customer Question

What can I write off for a personal contracted job in ca including gas miles
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

"personal contracted job" - can you confirm

if you are an employee with wages reported on W2

OR

you are a self-employed contractor with compensation reported on form 1099MISC.

Customer: replied 1 year ago.
1099
Customer: replied 1 year ago.
Tell me w2 also
Expert:  Lev replied 1 year ago.

Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business operates to make a profit.

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

So to verify your specific deductions - we would need to know the type of your business and what expenses you paid.

Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.

For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible.

Expert:  Lev replied 1 year ago.

If you use your car in your business, you can deduct car expenses. If you use your car for both business and personal purposes, you must divide your expenses based on actual mileage.
For instance - when you travel from home to work - that is commuting and considered a personal trip, but if you drive from one job place to another - that is a deductible business trip. You need to keep a log of all your trips including mileage and business purpose. That is required to support your deduction.

Expert:  Lev replied 1 year ago.

If you are using a part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation.
But again - only a business portion is deductible.
For instance - if your home is 1000 sf, but a portion you are using for business is 150 sf - you will be able to deduct 15% of all these expenses.

Expert:  Lev replied 1 year ago.

Other Types of Business Expenses - not all might be related to your situation.
•Employees' Pay - You can generally deduct the pay you give your employees for the services they perform for your business.
Retirement Plans - Retirement plans are savings plans that offer you tax advantages to set aside money for your own, and your employees' retirement.
•Rent Expense - Rent is any amount you pay for the use of property you do not own. In general, you can deduct rent as an expense only if the rent is for property you use in your trade or business. If you have or will receive equity in or title to the property, the rent is not deductible.
•Interest - Business interest expense is an amount charged for the use of money you borrowed for business activities.
•Taxes - You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses.
•Insurance - Generally, you can deduct the ordinary and necessary cost of insurance as a business expense, if it is for your trade, business, or profession.
This list is not all inclusive of the types of business expenses that you can deduct. For additional information, refer to Publication 535, Business Expenses

https://www.irs.gov/pub/irs-pdf/p535.pdf

Any questions?

Expert:  Lev replied 1 year ago.

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If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.

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