SIGforum
Tax question

This topic can be found at:
https://sigforum.com/eve/forums/a/tpc/f/320601935/m/6910010734

January 30, 2018, 07:17 PM
Lord Vaalic
Tax question
Wife has started working from home, so can I write off our internet costs?




Don't weep for the stupid, or you will be crying all day
January 30, 2018, 07:20 PM
a1abdj
Working for a third party or self employed?


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January 30, 2018, 07:21 PM
RogB
http://smallbusiness.chron.com...ible-1040-31947.html


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I wouldn't let anyone do to me what I've done to myself
January 30, 2018, 11:48 PM
Sailor1911
In either situation, a deduction can be taken. if self employed, it would be a deduction on the Schedule C. If an employee, a deduction as an employee business expense on 2106 flowing to Schedule A (itemized deductions) and subject to the 2 percent of AGI threshold.

In either case, you will need to establish the business percentage of the total that applies. If her income is dependent on internet access, I would lean toward 100 percent of the expense as "ordinary and necessary" to earn the income.




Place your clothes and weapons where you can find them in the dark.

“If in winning a race, you lose the respect of your fellow competitors, then you have won nothing” - Paul Elvstrom "The Great Dane" 1928 - 2016
January 31, 2018, 12:40 PM
SR
quote:
Originally posted by Sailor1911:
In either situation, a deduction can be taken. if self employed, it would be a deduction on the Schedule C. If an employee, a deduction as an employee business expense on 2106 flowing to Schedule A (itemized deductions) and subject to the 2 percent of AGI threshold.

In either case, you will need to establish the business percentage of the total that applies. If her income is dependent on internet access, I would lean toward 100 percent of the expense as "ordinary and necessary" to earn the income.


This was changed as part of the most recent tax bill. Oddly, the deduction previously available to an employee is suspended for tax years beginning after 12/31/2017 and before 1/1/2026. So, for 2018 and the foreseeable future, must be a trade or business reported on Schedule C to claim a deduction.




Speak softly and carry a big stick loaded Sig
January 31, 2018, 12:49 PM
Skull Leader
Just to clarify SR's statement, it still applies to your 2017 taxes.
January 31, 2018, 04:20 PM
Sailor1911
quote:
Originally posted by Skull Leader:
Just to clarify SR's statement, it still applies to your 2017 taxes.


Correct. I almost went back and added that - EE business expense is history for '18-25 and may be moot anyway with the higher STD Deduction.




Place your clothes and weapons where you can find them in the dark.

“If in winning a race, you lose the respect of your fellow competitors, then you have won nothing” - Paul Elvstrom "The Great Dane" 1928 - 2016