I became a Realtor in mid 2006, but did not make any money at all in 2006. I spent about 4,000 in marketing, fees, auto expenses, and other realted areas. I'm wondering with Taxcut, do I need to list this as a small personal business, or can I just list all these things under job related expenses? I'm not so much interested in which way is easier, as much as I honestly don't want to mess it up and get audited (that's a scarey thing). Any help would be great thanks.
2007-01-30 05:59:34 · 3 answers · asked by ... 4 in Business & Finance ➔ Taxes ➔ United States
if you were self employed and/or received a 1099 you need to file form Schelude C. Put all your expenses down and at the bottom it ask was all at risk check yes
2007-01-30 06:13:31 · answer #1 · answered by Abdoul D 2 · 0⤊ 0⤋
How you claim it is dependent on how the real estate office you are working for is treating you, either as an employee (and income reported on W-2) or as an independent contractor/agent (and income reported on 1099). You're better off claiming the business expenses on Schedule C (1099) rather than as job related expenses (W-2). Schedule C business expenses will directly offset income you receive in the form of sales commissions. Job related expenses are miscellaneous itemized deductions, which
1. requires you to itemize, AND
2. only the portion in excess of 2% of your adjusted gross income is deductible.
2007-01-30 14:11:05 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
Schedule C
2007-01-30 14:09:03 · answer #3 · answered by golferwhoworks 7 · 0⤊ 1⤋