Landlords a 1099 applies to you! Do you collect W-9s from contractors? Well did you collect W-9s from those contractors? Did you know that services over $600 threshold require that you do? When you use independent contractors to perform services for your business, for each individual whom you pay $600 or more for the year, the IRS […]
When we say an employee business tax deduction we mean it to refer to an employee business expense, such as payroll. We will point out the difference between how to treat an employee tax expense versus a 1099 contractor expense, along with AMT under tax reform. For starters, one major difference between being an employee and being self-employed is how you deduct the expenses you incur related to your work. A self-employed individual is able to deduct expenses on his or her business schedule. However, an employee is generally limited to deducting them as itemized deductions.
It is tricky to write off equipment purchases. In this article we we discuss the following: Depreciation, Materials & Supplies, De Minimis Safe, Harbor Expensing, Routine Maintenance, Unlimited Expensing, Bonus Depreciation, Sec 179 Expensing and Mixing Methods.