The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Schedule C question!!!!!!!||Date: 11/2/2000 5:26 PM|
|Author: TMFTaxes||Number: 41439 of 123001|
<<I have a regular job and on the side I edited a few chapters in a book.>>
You sound like a busy person. Congrats!!
<<Question 1) That "on the side income" is reported as self employed income on schedule C, correct?>>
It depends on how you are classified by the person making the payment to you. If you are an employee, you'll receive a W-2 form. It'll just be additional wages, and you'll report them with the wages that you receive from your "day" job. But if you are treated as an "independent contractor", you'll likely receive Form 1099 (if you receive anything at all). And that income would then be reported on Schedule C...as you correctly note.
<<Question 2) Can I buy a computer and a PDA and deduct them right off the top of the self employed income?>>
If you use the computer and the PDA exclusively for your business, yes. You would accomplish this by taking the "section 179 expense" election on this property. You can read more about this election in IRS Publication 946. If you use them LESS than 100% for your business but more than 50%, you'll still receive the 179 election, but your deduction will be limited to the cost of the equipment TIMES your business