video editing side job 1099 help...

Sithxace

Sithxace

Well-known member
I have a side job where I do video editing and videoshoots for a company and their websites. He is doing a 1099.

I made about 8k and I so far plan to write off all computer stuff that goes with the video editing I do such as: RAM, monitor, laptop, tablet, cpu, hard drives etc. The total of the writeoffs will be about 2-3k...

I have all records of the pruchases, i am wondering if I am going to get into any trouble with the irs?
 
Disclaimer: Always talk to a tax lawyer instead of us blustery folks here on the 'User

In general, you need to think about the percentage of use. If all the equipment and such is used ONLY for this paid contract work, then deduct it fully. Otherwise, deduct it at the percentage of use that goes towards the paid contracting work.

I'm assuming all theequipment you want to deduct was bought this year?
 
yeah will always speak to a professional when the time comes... just curious now.

Yeah I bought it all this year.
 
No. and write off more than just the gear, man. There is a percentage of your house if thats where it is kept and used, there are meals, gas, the wining and didning of clientele, your cable bill (thats research), ect.
I don't buy much where I don't keep the reciept and write it off. Everything I buy has somthing to do with the business. I even write off the custom parts I put on my car.
Let your accountant hold your hand through this. He'll need ALL of those reciepts to properly do his job. He can't do it unless thats what ya turn in to him.

I can tell you my first tear in business for myself I owed 60k to uncle sam. Each year since then it's been closer to 20k and that's just from hangin on to all those reciepts.
 
I've written off beer.

If our system wanted taxes fully paid, it'd just have a sales tax.
lol
 
Err, I'd be careful writing off a percentage of your house (home office, etc) unless you truly understand the downside of how it's allocation is depreciated over time against the ultimate price when you finally sell it - some find themselves in for a sad shock. OTOH, yes if you have a legitimate business, you can certainly write off your legitimate expenses against your sales. In fact, for a few years your expenses may moderately exceed your income.

Hopefully, you've already filed a DBA within your jurisdictional entity (County) within the current tax year. And yes, your CPA can guide you through all these matters and you can find helpful books on starting your own business.

Regards, Michael
 
moonlitnite said:
Err, I'd be careful writing off a percentage of your house (home office, etc) unless you truly understand the downside of how it's allocation is depreciated over time against the ultimate price when you finally sell it - some find themselves in for a sad shock. OTOH, yes if you have a legitimate business, you can certainly write off your legitimate expenses against your sales. In fact, for a few years your expenses may moderately exceed your income.
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Writing off part of your house as a business expense does not affect taxes when you sell your house--at least to my understanding. You can figure out how much sq footage your office uses and calculate that towards your utility bills and deduct that. TurboTax (Professional edition) is really good at asking questions to help you get the max deductions. We deduct a percentage of utilities, cell phone bill, land line bill, internet bill, all mileage I do for the business (that can end up being several thousands of dollars per year), equipment, food for shoots, and anything else we can come up with that is a fair deduction. Because of solely equipment, we pay very little in tax right now since our business is fairly new. Of course, that will change over the new few years.

Matthew
 
Macville said:
Writing off part of your house as a business expense does not affect taxes when you sell your house--at least to my understanding. You can figure out how much sq footage your office uses and calculate that towards your utility bills and deduct that. TurboTax (Professional edition) is really good at asking questions to help you get the max deductions. We deduct a percentage of utilities, cell phone bill, land line bill, internet bill, all mileage I do for the business (that can end up being several thousands of dollars per year), equipment, food for shoots, and anything else we can come up with that is a fair deduction. Because of solely equipment, we pay very little in tax right now since our business is fairly new. Of course, that will change over the new few years.

Matthew
Click to expand...

Google "home office tax deduction" to learn how this really works and study the IRS website.
 
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