Can an actor/model who receives W-2's/1099s respetively, submit schedule c deductions for both?

Question

I knowthat in order for you to be considered a business rather than a hobbies, three of the last 5 years need to be profitable. I have always claimed a business loss based on my 1099 income but make deductions as a "performing artist" which covers both roles. I only have a small percentage of my income from 1099-misc this year, but have the same expenses as last year (less actually). Almost all of my income is W2. My two-fold question is: 1. Can I, the "W-2 receiving ACTOR" file Schedule C, as self-employed since the W-2's come from payroll services for the various commercials I do. 2. In determining eligibility as a business: If I include the "W2 receiving Actor in the equation, then I am profitable " If I only count my 1099 income, then the years of loss don't qualify for schedule C. And yet the combined expenses for being a performing artist always bring my 1099-misc income as a model to a loss. It costs me more to

Answer 1

You have to show that you are TRYING to make a profit, not necessarily make one. Some businesses take longer than 5 years to make a profit.

You can only deduct the expenses incurred for the income received on the 1099 on Sch C. The other expenses would be reported on a from 2106 Employee Business Expenses. This would carry to Sch A Miscellaneous Deductions Subject to 2% of adjusted gross income and your total itemized deductions need to be higher than your standard deduction.

Answer 2

Schedule C deductions are only for expenses related to the 1099 income.

Answer 3

Assuming which you're submitting a joint return, you will document variety 1040 and teach your W-2 wages on line 7. she would have the ability to finished schedule C or C-EZ to account for the corporation earnings and expenditures. (be conscious that preliminary investment isn't a corporation rate according to se so she ought to teach a taxable earnings.) If the internet earnings on her corporation is $4 hundred or greater, she'll practice schedule SE to calculate the self-employment taxes.

Answer 4

Key, 3 out of 5 have to be profitable, otherwise you will probably have a problem with IRS.