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Discussion Starter #1
Any of you guys get a 1099 from a second source of income? How does it work out for y'all at year end? What all do you write off? I have heard different things? It won't be a big income producer I don't think. Maybe an extrta $500-$1000 per month. Just wanted to do all I could to save myself as much as possible. Can you actually take a loss in the beginning after your write offs?
 

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Any of you guys get a 1099 from a second source of income? How does it work out for y'all at year end? What all do you write off? I have heard different things? It won't be a big income producer I don't think. Maybe an extrta $500-$1000 per month. Just wanted to do all I could to save myself as much as possible. Can you actually take a loss in the beginning after your write offs?

It all depends on the source of income. In my case, my 1099 income is a rental house. I can write stuff off all day long as long as it falls in the category of business related. And the same with you too, if your 1099 source of income is from being self employed, you are on the "write off gravy train" as long as it applies to the business. Show a loss and you are good.
 

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You can deduct any expenses associated with making that money. Plus, you can set up depreciation schedules for any equipment involved. You can also lease yourself space in your home for doing the work and maintaining recordkeeping. You can deduct mileage for using your personal vehicle for business purposes.

Once you get into depreciation and amortization the rules become quite specific. Such as the number of years you're allowed to depreciate certain types of equipment. Best to get a tax consultant to help you set it up.

If your business is losing money, you should be prepared to explain why you're in the business. You could be building for a better future, and that's a legitimate reason, but if you lose money for 2 or 3 years in a row the IRS will be looking at you funny.
 

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Used to get paid for the whole year on a 1099 driving a semi. I wrote off everything right down to paper towels and windex.
 

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Discussion Starter #5
Thanks guys. It's just a little work from home side venture, but they will 1099 me. Just was wondering the specifics. Fuel, Internet, Food with clients, etc.. Is what I was told.
 
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